Which of the following events shifts the short-run aggregate supply curve to the right?
A) technological improvements
B) increases in input prices
C) reductions in the amounts of available labor and capital
D) increases in consumer and government spending
E) significant shortages of important raw materials

Question

Quizplus · Accepted Answer

Technological improvements increase productivity and efficiency, reducing the cost of production and increasing the quantity of output that firms are able and willing to produce at any given price level. This leads to a rightward shift in the short-run aggregate supply (SRAS) curve.

Which of the Following Events Shifts the Short-Run Aggregate Supply