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

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

Quizplus · Accepted Answer

An increase in productivity will lower the cost of production, which allows firms to produce more output at every price level. This shifts the short-run aggregate supply curve to the right.

Other Things Equal, an Increase in Productivity Will Shift the Short-Run