Using the AD and Solow growth curve model, the internet revolution of the 1990s caused

Question

Quizplus · Accepted Answer

The internet revolution of the 1990s led to an increase in technology, which is one of the factors that can cause the production function to shift outward in the Solow growth curve model. This increase in productivity would lead to an increase in real growth. Additionally, the increased competition and efficiency brought about by the internet may lead to a decrease in firms' pricing power, reducing inflationary pressures. Thus, the internet revolution of the 1990s caused real growth to increase and inflation to decrease.

Using the AD and Solow Growth Curve Model, the Internet