Which of these will increase aggregate supply?
A) The president raises tariffs on Chinese imports.
B) The president asks Congress for $200 billion for rebuilding roads and bridges.
C) The Secretary of Education finalizes rules that make it more difficult for students to obtain federal loans.
D) The Environmental Protection Agency (EPA) announces new, tighter standards for lead in dust on floors and windowsills.

Question

Quizplus · Accepted Answer

Rebuilding roads and bridges would create jobs and stimulate economic activity, leading to an increase in the aggregate supply. A, C, and D would likely have the opposite effect and decrease aggregate supply by increasing costs or reducing productivity.

Which of These Will Increase Aggregate Supply