Which of the following events will increase short-run aggregate supply?
A) an advance in technology
B) an increase in foreign income
C) an increase in resource prices
D) an increase in the natural unemployment rate

Question

Quizplus · Accepted Answer

An advance in technology would increase the productivity of workers and lower the cost of production, leading to an increase in short-run aggregate supply. The other options would decrease short-run aggregate supply.

Which of the Following Events Will Increase Short-Run Aggregate Supply