Question

An increase in the productivity of labour will lead to:

• a movement along the aggregate production function but no shift in it.

• both a movement along and an upward shift in the aggregate production function.

• an upward shift of the aggregate production function but no movement along it.

• a downward shift of the aggregate production function but no movement along it.

Answer 1

• an upward shift of the aggregate production function but no movement along it.