The aggregate quantity of goods and services produced increases at every price level when overall productivity in the economy improves.

Question

Quizplus · Accepted Answer

This statement is true. When overall productivity in the economy improves, it means that firms are producing more output with the same amount of inputs, which increases the aggregate quantity of goods and services produced. This increase in output occurs at every price level because the increase in productivity affects all sectors of the economy.

The Aggregate Quantity of Goods and Services Produced Increases at Every