If there is an increase in labor productivity:
A. the production possibilities curve would shift outward and the long-run aggregate supply curve would shift leftward.
B. the production possibilities curve would shift inward and the long-run aggregate supply curve would shift rightward.
C. the production possibilities curve would shift inward and the long-run aggregate supply curve would shift leftward.
D. the production possibilities curve would shift outward and the long-run aggregate supply curve would shift rightward.
Answer: D
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