Answer to Question #227759 in Macroeconomics for Prisca Mahlalela

Question

An increase in the productivity of labour will lead to:

A. An upward shift of the aggregate production function but no movement along it.

B. An downward shift of the aggregate production function but no movement along it.

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

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

Answer 1

A. An upward shift of the aggregate production function but no movement along it.