Final answer:
A new technological advancement in the manufacturing sector increases productivity, consequently shifting the aggregate supply (AS) curve to the right, signifying greater output and potentially lower inflation and unemployment.
Step-by-step explanation:
When new technological advancements are made in the manufacturing sector of Xurbia, they generally lead to productivity growth. This productivity increase means that the same amount of labor can produce more output, which shifts the aggregate supply (AS) curve to the right. In the AD/AS diagram, a shift of the AS curve to the right indicates that at every price level, a greater quantity of real GDP is supplied; consequently, this leads to lower inflation, higher output, and potentially lower unemployment in Xurbia's economy.