Discuss how an increase in aggregate supply may effect output and inflation!

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Aggregate supply is the total supply in the economy of a country.Inflation is there's an increase in the price level.An increase in aggregate supply may caused by raw materials became cheaper or a decrease in the worker's wages.An increase in the aggregate supply will increase outputs in an economy.In the long run,an increase in aggregate supply will leads to economic growth and could be beneficial because it will also reduce unemployment as there's an increase in Real GDP so that,more jobs will be available for unemployed people.AS increases will also make domestic products be more competitive,and also the country will be available to export more.As exports are on of the components of AD,and ceteris paribus,AD will likely to increase as well.
As in the diagram below explains the affect of an increase in AS to Inflation.

A shift righwards in AS will leads to an increase in the price level.According to the diagram,the price level decreased from P1 to P2 which means inflation has been reduced.As AS increases,there will be more outputs produced by firms and industries in the economy.So that,inflation is likely to be reduced because there are no scarse products with high cost materials,and also to increase AD as well.




However in the long run,an increase in AS will also leads to an increase in AD.So that,inflation will be depend on how much an incease in AS compare to AD.Because if AS increses and economy is growing so AD will grow as well.And if it increases more than AS therefore it will be a demand pull inflation.Also it depends on how much AS increases,if AS increases too much,and AD can't exceed it,therefore there will be overproduction and waste of materials and resources.