The rapid development of Internet technologies during the 1990s allowed businesses to produce goods and services more cheaply than before and also gave rise to completely new services. We would show this change in the AD/AS model by moving the short-run aggregate:
A)demand curve right with little change in short-run aggregate supply.
B)demand curve left with little change in short-run aggregate supply.
C)supply curve down (to the right)with little change in aggregate demand.
D)supply curve up with little change in aggregate demand.

Question

Quizplus · Accepted Answer

The rapid development of Internet technologies reduced production costs and introduced new services, effectively increasing the efficiency of producing goods and services. This is represented in the AD/AS model by moving the short-run aggregate supply curve to the right (or down), indicating an increase in supply without a significant change in aggregate demand.

The Rapid Development of Internet Technologies During the 1990s Allowed