An increase in future total factor productivity shifts the

Question

Quizplus · Accepted Answer

An increase in future total factor productivity will increase the potential output of an economy, shifting the Y^d curve to the right. This is because the Y^d curve shows the maximum potential output that can be produced with the given level of resources and technology, and an increase in total factor productivity implies that more can be produced with the same level of resources and technology.

An Increase in Future Total Factor Productivity Shifts the