If the labour force becomes healthier and productivity increases,short-run aggregate supply is likely to increase.

Question

Quizplus · Accepted Answer

When the labour force becomes healthier, the productivity of the workers is likely to increase. This can lead to an increase in the production of goods and services in the economy, which would cause an increase in short-run aggregate supply. Therefore, the statement is true.

If the Labour Force Becomes Healthier and Productivity Increases,short-Run Aggregate