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:

Civil War

An internal conflict within a country between different groups or regions, often over issues of governance, territory, or cultural identity.

National Output

The total value of all goods and services produced by a country over a specific period, often measured as Gross Domestic Product (GDP).

Automobile Industry

A global sector that involves the design, manufacture, marketing, and sale of motor vehicles, often considered a major driver of economic activity.

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technology.