How would supply affect the aggregate output of an economy?
A) Supply would decrease aggregate output.
B) Increases in both would cause inflation.
C) Aggregate output would grow with supply.
D) Supply would have no direct effect on aggregate output.
E) Aggregate output would increase the money supply.

Question

Quizplus · Accepted Answer

C)Supply is the amount of goods available, and aggregate output is the production of goods, so increased supply would increase aggregate output.

How Would Supply Affect the Aggregate Output of an Economy