The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation.What did this technological change do the short-run supply curve?
A)It shifted the short-run aggregate supply curve to the left.
B)It shifted the short-run aggregate supply curve to the right.
C)It moved the economy up along a stationary short-run aggregate supply curve.
D)It moved the economy down along a stationary short-run aggregate supply curve.

Question

Quizplus · Accepted Answer

The invention of the cotton gin increased the productivity of the cotton industry, which led to lower costs of production and increased supply of cotton. This shift towards more efficient production methods resulted in an increase in the short-run aggregate supply curve, shifting it to the right. As a result, prices of cotton goods declined, and the economy experienced an increase in output and growth.

The Invention of the Cotton Gin Ushered in the Industrial