Which of the following events will increase short- run aggregate supply?
A) an increase in foreign income
B) an increase in resource prices
C) an advance in technology
D) an increase in the natural unemployment rate

Question

Quizplus · Accepted Answer

An advance in technology can increase worker productivity and efficiency, leading to lower production costs and an increase in short-run aggregate supply. 
The other choices would decrease short-run aggregate supply: 
A) An increase in foreign income would increase demand for goods and services, leading to higher prices and a decrease in short-run aggregate supply. 
B) An increase in resource prices would raise production costs and decrease short-run aggregate supply. 
D) An increase in the natural unemployment rate would reduce worker productivity and decrease short-run aggregate supply.

Which of the Following Events Will Increase Short- Run Aggregate