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Suppose the average U.S. worker has a large increase in productivity. What impact would this have...

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Suppose the average U.S. worker has a large increase in productivity. What impact would this have on aggregate demand, short-run aggregate supply, and real GDP?

Worker:

A worker is a person who engages in different production processes and helps generate the business firm's output. A firm is mandatory to hire workers for producing goods and services. Without the services of a worker, production cannot take place.

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  • The aggregate demand, aggregate supply, and the real GDP will increase.

Suppose there is a large increase in the productivity of U.S. workers. The...

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Understanding Aggregate Supply & Demand

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Chapter 60 / Lesson 2
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In economics, aggregate supply and demand are used to determine the production and purchasing power of the economy. Learn about aggregate supply and aggregate demand, and explore the details of the AS/AD model devised by John Maynard Keynes.


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