Evaluate question 2

Discuss how an increase in aggregate supply may affect output and inflation.

Aggregate supply is the total amount the producers is willing and able to supply at a given price over a period of time. How an increase in AS may affect output and inflation depends on the situation of the economy.
If the an economy is working at full capacity, an increase in AS would help to reduce demand-pull inflation and rise real GDP.(a diagram could be drawn) . Increase in AS is due to the lower cost of production in the short run, and increase in productivity in the long run. Inflation will take place if the increase in AD is faster than the increase in AS ( diagram).
If increase in AS is achieved by education and training in the long run, it is essential to the economy in the long run.
If the economy is currently having inflation, an increase in AS is likely to slowdown the inflation.
And if the economy is experiencing structure unemployment, increase in AS would reduced the unemployment, however, low unemployment is likely to lead to high inflation. (phillips curve)
If the economy is working under full capacity, increase in AS may not have effect on output and inflation.
All the aboves have to depends on how much the increases is. If the increase in AS is large, the faster slowdown on inflation in some case.But if the increase in AS matched with the increase in AD, it will increase in output without generate inflation.