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

Economics

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