Assume an Economy Experiences an Increase in Productivity That Occurs

Multiple Choice

Assume an economy experiences an increase in productivity that occurs as a result of a more widespread implementation of a major technological breakthrough. Given this information, we would expect which of the following to occur?

A) Aggregate demand would shift to the left.
B) Aggregate demand would not change.
C) Aggregate demand would shift to the right.
D) Both the aggregate demand and aggregate supply curves would shift to the right.
E) Both the aggregate demand and aggregate supply curves would shift to the left.