A Rise in Labor Productivity Will MOST Likely Result in A(n)

question 3

Multiple Choice

A rise in labor productivity will MOST likely result in a(n) :

• A) increase in aggregate demand.
• B) decrease in aggregate demand.
• C) decrease in aggregate supply.
• D) increase in aggregate supply.

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Definitions:

Income Ladder

A metaphorical representation of the distribution of income across individuals or households in a society, indicating levels of wealth or poverty.

Quintile

A statistical value that divides a group of data into five equal parts, each containing 20% of the population.

Transfer Payment

Payments made by governments to individuals without any goods or services being exchanged, such as social security benefits.

Social Security

A government program that provides monetary assistance to people with an inadequate or no income.