Which of the following would cause an increase in aggregate supply?
A)An increase in factors of production
B)An increase in foreign demand for goods
C)A decrease in productivity
D)An increase in government spending

Question

Quizplus · Accepted Answer

An increase in factors of production, such as land, labor, and capital, would enable firms to produce more goods and services, thus increasing aggregate supply. Option B would affect demand and not supply. Option C would decrease aggregate supply. Option D would increase demand but not supply.

Which of the Following Would Cause an Increase in Aggregate