Question

the invention of the cotton gin ushered in the industrial revolution and began a long period of technological innovation. what did this technological change do the short run supply curve?

a. it moved the economy down along a stationary short run aggregate supply curve.
b. it moved the economy up along a stationary short run aggregate supply curve.
c. it shifted the short run aggregate supply curve to the right.
d. it shifted the short run aggregate supply curve to the left.

Explanation:

Technological innovation (like the cotton gin) increases productivity, allowing firms to produce more at each price level. A rightward shift of the short - run aggregate supply (SRAS) curve occurs when factors like technology improve, as it represents an increase in the quantity of goods and services supplied at every price level. Moving along the curve (options A and B) is due to price - level changes, not technological change. A leftward shift (option D) would be from a negative supply shock, not a technological improvement.

Answer:

C. It shifted the short run aggregate supply curve to the right.