Use the Following to Answer Questions

question 11

Multiple Choice

Use the following to answer questions.
Exhibit: Aggregate Production Function, Labor Market, and LRAS
-(Exhibit: Aggregate Production Function, Labor Market, and LRAS) If a change in technology moves the aggregate production function in Panel (a) upwards, what happens to the economy's potential output?

• A) Potential output remains unchanged.
• B) Potential output increases.
• C) Potential output decreases.
• D) Potential output could increase or decrease depending on what happens in the labor market.

---

Definitions:

Otis-Lennon

A standardized test commonly used to assess verbal, quantitative, and spatial reasoning abilities in children.

WAIS-III

The Wechsler Adult Intelligence Scale, Third Edition, is a test designed to measure human intelligence through various cognitive tasks.

Intelligence Test

A standardized assessment designed to measure human intelligence, often through problem-solving, memory, and verbal reasoning tasks.

Relatively Consistent

Describes something that maintains a general uniformity or regularity, though there may be minor variations or exceptions.