Which factor will increase short-run aggregate supply?Choose one answer from the options below.a law that requires health insurance for all employeesan increase in the aggregate price levela large decrease in the price of oilan increase in the minimum wageBackNext
Question
Which factor will increase short-run aggregate supply?Choose one answer from the options below.a law that requires health insurance for all employeesan increase in the aggregate price levela large decrease in the price of oilan increase in the minimum wageBackNext
Solution
The factor that will increase short-run aggregate supply is "a large decrease in the price of oil". This is because when the price of oil decreases, the cost of production for goods and services also decreases. This allows companies to produce more, thus increasing the short-run aggregate supply.
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