Any factor that increases resource availability causes
A) an increase in aggregate demand.
B) a decrease in aggregate demand.
C) an increase in aggregate supply.
D) a decrease in aggregate supply.

Question

Quizplus · Accepted Answer

An increase in resource availability will lead to an increase in aggregate supply, as there are more resources available to produce goods and services. This will shift the AS curve to the right, resulting in a lower price level and higher output.

Any Factor That Increases Resource Availability Causes