Question

Other things equal, an increase in productivity will Multiple Choice reduce aggregate supply and increase real output. reduce both the interest rate and the international value of the dollar. increase both aggregate supply and real output. increase net exports, increase investment, and reduce aggregate demand.

Answer 1

Answer:

increase both aggregate supply and real output.

Explanation:

A rise in productivity makes it possible for each and every firm to rise the greater amount of output. due to this  aggregate supply will rise which will lead to increase in the real output.

Also the rise in productivity increase the aggregate supply and the AS curve would be shifted to right that rise the real output but reduce the level of the price in the new equilibrium output level

Therefore the above represent the answer