Other things equal, an increase in productivity will shift the aggregate supply curve rightward.

Name: Other things equal, an increase in productivity will shift the aggregate supply curve rightward.
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Question

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An increase in productivity means that firms are able to produce more output with the same amount of inputs, leading to a lower cost of production. This will cause firms to offer more output at every price level, shifting the aggregate supply curve rightward.

Other Things Equal, an Increase in Productivity Will Shift the Aggregate