An increase in future total factor productivity shifts the
A)M curve to the right.
B)Yd curve to the left.
C)Yd curve to the right.
D)Ys curve to the left.
E)Ns curve to the right.

Question

Quizplus · Accepted Answer

An increase in future total factor productivity increases expected future output, which shifts the desired investment curve (Yd) to the right as firms anticipate higher returns on investment.

An Increase in Future Total Factor Productivity Shifts the