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 the more efficient use of existing technologies. Given this information, we would expect which of the following to occur?

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