Which Factor Will Increase Short-Run Aggregate Supply

question 48

Multiple Choice

Which factor will increase short-run aggregate supply?

• A) a law that requires health insurance for all employees
• B) an increase in the aggregate price level
• C) a large decrease in the price of oil
• D) an increase in the minimum wage

Understand the concept of economic profit versus accounting profit by incorporating both explicit and implicit costs.

Recognize the significance of input variation on total output and its relationship to the law of diminishing returns.

Analyze the economics of firm decision-making in the short run, including the effects of changing input levels on costs and output.

Calculate and understand the significance of average product at different levels of labor input.

---

Definitions:

Protectionism

A call for tariffs and favorable treatments to protect domestic firms from foreign competition.

Foreign Competition

The presence of companies from different countries competing in a market, often emphasizing the global nature of business.

European Union

The European Union is a political and economic union of member states that are located primarily in Europe, aiming to promote peace, stability, and economic cooperation among its members.

Cross-border Trade

Involves the exchange of goods or services between entities in different countries, navigating various regulations and market conditions.