An increase in productivity will shift the aggregate:
A)demand curve leftward.
B)demand curve rightward.
C)supply curve rightward.
D)supply curve leftward.

Question

Quizplus · Accepted Answer

An increase in productivity means that suppliers can produce more output for the same amount of inputs, resulting in a lower cost of production. This will cause the supply curve to shift rightward, as suppliers are willing and able to sell a greater quantity of output at any price level.

An Increase in Productivity Will Shift the Aggregate