Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,an increase in productivity would be represented by a movement from A)SRAS₁ to SRAS₂. B)SRAS₂ to SRAS₁. C)point A to point B. D)point B to point A.

Question

Quizplus · Accepted Answer

An increase in productivity shifts the SRAS curve to the right. This means that at any given price level, producers are now willing and able to supply more output. This is represented by a movement along the vertical axis from point A to point B, where the SRAS curve crosses the initial price level of P1. The output level increases from Y1 to Y2, while the price level remains the same at P1.

Figure 15-2 -Refer to Figure 15-2.Ceteris Paribus,an Increase in Productivity Would Be