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Suppose an economy experiences an increase in productivity. The AD curve will most likely shift to ...

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Suppose an economy experiences an increase in productivity. The AD curve will most likely shift to ...

Suppose an economy experiences an increase in productivity. The AD curve will most likely shift to the left when this increase in productivity is the result of which of the following?
A) a major technological breakthrough
B) a reorganization of production designed to reduce costs with existing technology
C) an increase in human capital
D) government subsidies for higher education
E) none of the above

Textbook

Macroeconomics

Edition: 6^th

Authors: Blanchard, Johnson

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