Which of the following increases aggregate supply in the short-run,everything else held constant?
A) An increase in the price of crude oil.
B) A successful wage push by workers.
C) Expectations of a higher inflation.
D) A technological improvement that increases worker productivity.

Question

Quizplus · Accepted Answer

A technological improvement that increases worker productivity will increase the efficiency of production, resulting in higher output levels and lower costs, increasing aggregate supply in the short-run. Option A is incorrect as it would increase costs of production and decrease aggregate supply. Option B and C are incorrect as they would increase production costs and decrease short-run aggregate supply.

Which of the Following Increases Aggregate Supply in the Short-Run,everything