Answer: The price level falls and output rises.
Explanation:
According to Moore's law, it is stated that the computing speed of a microchip doubles every 18 months. According to Moore, this will increase thespeed and capability of computers and also bring about lesser pay for the computers.
The effect of this on the economy is that it will lead to a fall in price level and increase in output as there will be faster and cheaper production. This can be shown in the diagram attached.
A fall in the price levels the output rises. Thus the option A is correct.
The law is an observation of the number of transistors into a densely integrated circuit. The law is an observation and a projection of the historical trends. Rather than a law of physics, it has an empirical relation.
The law the computing speed of the microchips doubles every eighteen months. As per Moore, this will increase the speed and the computability. of the computer. Thus paying lesser for the computer.
The impact is it will have on the economy is that it create a fall in price level and an increase in the output as there will be faster and cheaper production.
Find out more information about the Moore's law states.
brainly.com/question/14947354.
