Which of the Following Would Result from a Positive Productivity

question 136

Multiple Choice

Which of the following would result from a positive productivity shock?

• A) an increase in the rate of inflation
• B) a shift to the right of the aggregate demand curve
• C) a shift to the left of the long-run aggregate supply curve
• D) an increase in the economy's long-run potential growth rate

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Definitions:

Group Polarization

The phenomenon where discussions within a group lead to the adoption of more extreme positions or attitudes than the initial inclinations of its members.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Social Facilitation

The tendency for people to perform tasks better when they are in the presence of others.

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort and distress when holding two or more contradictory beliefs, ideas, or values, often leading to changes in beliefs or attitudes.