An Increase in Productivity Will Likely Cause

question 14

Multiple Choice

An increase in productivity will likely cause

• A)the AS curve to shift upward,but has no effect on the AD curve.
• B)the AS curve to shift downward,and the AD curve to shift leftward.
• C)the AS curve to shift upward and the AD curve to shift rightward.
• D)the AS curve to shift downward and the AD curve to shift rightward.
• E)the AS curve to shift downward,and have an ambiguous effect on the AD curve.

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Definitions:

Merchandise Business

A type of business that purchases finished goods for resale, making profit through the buying and selling process.

Service Business

A type of business that provides intangible products or services to customers.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Revenue from Sales

Represents the income that a company generates from its business activities, typically from the sale of goods or services to customers.