A rise in labor productivity will MOST likely result in a(n):
A) increase in aggregate demand.
B) decrease in aggregate demand.
C) decrease in aggregate supply.
D) increase in aggregate supply.

Question

Quizplus · Accepted Answer

A rise in labor productivity means that each worker is producing more output per unit of time, leading to an increase in the economy's potential output. This will shift the aggregate supply curve to the right, resulting in an increase in aggregate supply.

A Rise in Labor Productivity Will MOST Likely Result in A(n)