An Advance in Technology Increases the Productivity of Labor

question 170

Multiple Choice

An advance in technology increases the productivity of labor. As a result, the nation's production function shifts ________ and the ________ labor curve shifts rightward.

• A) upward; demand for
• B) downward; demand for
• C) upward; supply of
• D) downward; supply of

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Definitions:

Aggregate Demand

represents the total demand for all goods and services in an economy at a given time and price level.

Short-Run Aggregate Supply

Represents the total output of goods and services produced in an economy at different price levels over a short period, during which some factors of production are fixed.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short time period, at different possible price levels.

Money Supply

The money supply refers to the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.