Question

Technological progress will:_____.multiple choice

a. shift the investment schedule upward and increase the equilibrium level of gdp.
b. shift the investment schedule downward and decrease the level of employment.
c. shift the investment schedule downward and increase the level of employment.
d. increase unplanned investment in inventories.

Answer 1

Technological progress will shift the investment schedule upward and increase the equilibrium level of GDP.

Step-by-step explanation:

Technological progress will shift the investment schedule upward and increase the equilibrium level of GDP. This is represented by option A. When technology improves, it creates more profit opportunities for businesses, leading to increased investment. As a result, the aggregate demand (AD) curve shifts to the right, causing an increase in the equilibrium level of GDP.