Generally,an increase in aggregate supply is
A) the result of an increase in the price level.
B) represented by a movement up along the SRAS curve.
C) represented by a rightward shift in the SRAS curve.
D) both a and b
E) both a and C

Question

Quizplus · Accepted Answer

An increase in aggregate supply means that there is an increase in the quantity of goods and services produced in the economy. This can be caused by various factors like technological advancements, increase in capital stock, and improvement in the labor force efficiency. An increase in aggregate supply is represented by a rightward shift in the SRAS curve as the same quantity of goods and services can be produced at a lower price level due to the above factors. Therefore, the correct answer is option C - represented by a rightward shift in the SRAS curve.

Generally,an Increase in Aggregate Supply Is