What does an increase in short-run aggregate supply likely indicate about production conditions?

An increase in short-run aggregate supply typically indicates improved production conditions for suppliers, leading to higher output. This improvement can stem from several factors, such as technological advancements that enhance production efficiency, reductions in input costs, or favorable regulatory changes. When these conditions are met, producers find it easier to increase their output, which shifts the short-run aggregate supply curve to the right.

This shift suggests that firms are able to supply more goods and services without a corresponding increase in prices, generally reflecting a healthier and more productive production environment. In contrast, the other options present scenarios that do not align with an increase in short-run aggregate supply. Higher resource costs would generally deter production, decreased output directly contradicts the premise of increased supply, and increased consumer demand, while affecting aggregate demand, does not inherently signify improvements in the production conditions of suppliers.