In a graph that measures output in the y-axis and the efficiency units of labor in the x-axis,which of the following causes an upward movement along the aggregate production function?
A) An increase in the total efficiency units of labor
B) A decrease in the physical capital stock
C) An improvement in technology
D) A decrease in the productivity of workers

Question

Quizplus · Accepted Answer

An increase in the total efficiency units of labor would cause an upward movement along the aggregate production function because it represents an increase in the productivity of labor, which leads to an increase in output. The other options would either shift the production function downward (B and D) or shift it upward (C).

In a Graph That Measures Output in the Y-Axis and the Efficiency