An Increase in Productivity Will

question 123

Multiple Choice

An increase in productivity will:

• A) Increase aggregate demand
• B) Increase aggregate supply
• C) Increase aggregate supply and aggregate demand
• D) Decrease aggregate supply and aggregate demand

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Definitions:

Last Year

The term referring to the year immediately preceding the current one.

Mean-Variance Efficient

Mean-Variance Efficient describes an investment portfolio which maximizes returns for a given amount of risk or minimizes risk for a given level of expected return.

Single-Index Structure

A model in finance that relates the return of an asset to a single market index, representing the asset's sensitivity to movements in the market.

Covariances

A measure of how two variables move together, indicating the degree to which they are related.