A Technological Advancement That Increases the Productivity of an Input

question 49

Multiple Choice

A technological advancement that increases the productivity of an input will lead to:​

• A)a leftward shift in the short-run aggregate supply curve and a rightward shift in the long-run aggregate supply curve.
• B)a rightward shift in the short-run aggregate supply curve and a leftward shift in the long-run aggregate supply curve.
• C)a leftward shift in the short-run aggregate supply curve, but no shift in the long-run aggregate supply curve.
• D)a change in the slope of the short-run aggregate supply curve and a rightward shift in the long-run aggregate supply curve.
• E)a rightward shift in both the short-run aggregate supply curve and the long-run aggregate supply curve.

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Definitions:

Coefficient of Determination

A measure, often represented as R^2, that quantifies the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Variance

A measure of how far individual numbers in a dataset are from the mean, squared.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to +1.