Which Would Most Likely Increase Aggregate Supply

question 194

Multiple Choice

Which would most likely increase aggregate supply?

• A) an increase in the prices of imported products
• B) an increase in productivity
• C) a decrease in business subsidies
• D) a decrease in personal income taxes

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Definitions:

Consumption Possibilities

The different combinations of goods and services that a consumer can afford to purchase at given prices with their income level.

Production Possibilities

Represents the various combinations of goods and services that an economy can produce, given its technological capabilities and resources.

Major Exporter

A country or region that sells a large quantity of goods or services to other countries.

Corn

A large grain plant domesticated by indigenous peoples in southern Mexico about 10,000 years ago, widely grown for its edible kernels.