Which of the Following Events Will Increase Short- Run Aggregate

question 144

Multiple Choice

Which of the following events will increase short- run aggregate supply?

• A)An increase in foreign income
• B)An advance in technology
• C)An increase in the natural unemployment rate
• D)An increase in resource prices

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Definitions:

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use or consumption.

Domestic Producers

Companies or individuals that produce goods and services within a country's borders, contributing to the domestic economy.

Terms of Trade

This concept measures the ratio of a country's export prices to its import prices, indicating the relative strength of its economy in the global market.

Equilibrium World Price

The price of an internationally traded product that equates the quantity of the product demanded by importers with the quantity of the product supplied by exporters; the price determined at the intersection of the export supply curve and the import demand curve.