Suppose an Economy Experiences an Increase in Productivity

Multiple Choice

Suppose an economy experiences an increase in productivity. The AD curve will most likely shift to the right when this increase in productivity is the result of which of the following?

A) Government subsidies for higher education.
B) An increase in human capital.
C) New tax incentives for R&D spending.
D) A reorganisation of production designed to reduce costs with existing technology.
E) Implementation of major technological breakthrough.