Which of the Following Events Will Increase Short- Run Aggregate

question 14

Multiple Choice

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

---

Definitions:

Social Inefficiencies

Situations where resources are not allocated efficiently due to factors such as externalities, public goods, or market power, leading to a loss of social welfare.

Monopolist

A single seller in a market with no close substitutes for the product or service, giving them significant control over prices and output.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as the production volume varies.