Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in productivity would be represented by a movement from A)SRAS₁ to SRAS₂. B)SRAS₂ to SRAS₁. C)point A to point B. D)point B to point A.

Question

Quizplus · Accepted Answer

An increase in productivity would shift the SRAS curve to the right, from SRAS₁ to SRAS₂. This represents an increase in potential output and a decrease in the price level. Therefore, option A is the correct choice.

Figure 13-2 -Refer to Figure 13-2.Ceteris Paribus,an Increase in Productivity Would Be