A(n) _____ in productivity and a(n) _____ in taxes will shift short-run aggregate supply to the right.
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase

Question

Quizplus · Accepted Answer

An increase in productivity makes the economy more efficient, allowing more output with the same inputs, and a decrease in taxes can increase disposable income and business investment, both of which can stimulate production. These factors shift the short-run aggregate supply (SRAS) curve to the right, indicating an increase in the total production at each price level.

A(n) _____ in Productivity and A(n) _____ in Taxes Will

A(n) _ in Productivity and A(n) _ in Taxes Will