An increase in technology ________ potential GDP and ________ aggregate supply.
A)increases;increases
B)increases;decreases
C)decreases;increases
D)decreases;decreases
E)does not change;does not change

Question

Quizplus · Accepted Answer

An increase in technology improves the efficiency of production and hence helps in increasing potential GDP. Additionally, it also increases aggregate supply as firms can produce more output with the same level of inputs.

An Increase in Technology ________ Potential GDP and ________ Aggregate

An Increase in Technology Potential GDP and Aggregate