After an advance in technology that improves productivity, a country's short-run aggregate supply curve will:
A) shift to the right.
B) shift to the left.
C) rotate to a steeper slope.
D) rotate to a more horizontal slope.

Question

Quizplus · Accepted Answer

An advance in technology that improves productivity allows the same amount of inputs to produce more output, or for less input to produce the same output. This increases the overall supply of goods and services in the economy, represented by a rightward shift in the short-run aggregate supply curve.

After an Advance in Technology That Improves Productivity, a Country's