Suppose That a New Invention Increases the Marginal Productivity of Labor

question 330

Multiple Choice

Suppose that a new invention increases the marginal productivity of labor, shifting labor demand to the right. Such an invention would be an example of

• A)labor-saving technology.
• B)labor-augmenting technology.
• C)revenue technology.
• D)supply-shifting technology.

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Definitions:

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in an economy and the total output (goods and services) that producers are willing to supply.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and in a given time period.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of an economy's size and how it's growing over time.

Aggregate Demand Curve

The aggregate demand curve represents the total quantity of all goods and services demanded by the economy at different price levels.