Other things being equal, an improvement in technology causes:
A) a decrease in the aggregate supply curve.
B) an increase in the aggregate demand curve.
C) a decrease in the aggregate demand curve.
D) an increase in the aggregate supply curve.

Question

Quizplus · Accepted Answer

An improvement in technology leads to an increase in productivity which in turn increases the supply of output at any given price level. Therefore, the aggregate supply curve shifts to the right.

Other Things Being Equal, an Improvement in Technology Causes