Final answer:
Increasing short-run aggregate supply involves improving human capital, technology, and enacting favorable economic policies. Educational investment and tax reductions for businesses are effective methods, while decreased regulations and military spending indirectly affect economic growth.
Step-by-step explanation:
To increase short-run aggregate supply, it is important to enhance human capital, improve technology, and manage economic policies effectively. For instance:
- Increase in investment in technology leads to more efficient production processes and stimulates economic growth.
- Reduction in government regulations can lead to a more conducive business environment, fostering innovation and efficiency.
- An educated workforce is crucial as it underpins the capacity to innovate and adapt to new technologies.
- Decreased taxes on businesses can boost investment and spending on research and development, enhancing productivity and economic growth.
Factors such as a surge in military spending or a major increase in government healthcare spending can indirectly influence economic growth by affecting aggregate demand rather than supply, thus not being directly correlated with the increase in short-run aggregate supply.