Which of the following increases aggregate supply in the short-run,everything else held constant?
A)An increase in the price of crude oil.
B)A successful wage push by workers.
C)Expectations of a higher aggregate price level.
D)A technological improvement that increases worker productivity.

Question

Quizplus · Accepted Answer

A technological improvement that increases worker productivity will increase the efficiency of production, thereby lowering per unit cost of production. This will increase aggregate supply in the short run. The other choices (A, B, C) would decrease aggregate supply in the short run.

Which of the Following Increases Aggregate Supply in the Short-Run,everything