Final answer:
Selling more goods to maximize the use of existing resources will increase the output value for given inputs, increase wages in the labor market, and result in a rightward shift of the supply curve, reflecting a higher quantity supplied.
Step-by-step explanation:
Selling more goods to increase capacity and use of existing resources would increase the value of the output produced by a given amount of input. Workers who can produce more will be more desirable to employers, leading to a shift in the demand for their labor, which in turn can increase wages in the labor market. Conversely, any barriers to trade could lead to a reduction in the average level of wages because they restrict the flow of goods, services, and labor.
When businesses can sell their output at higher prices, assuming input costs remain stable, this can significantly boost aggregate supply, as it incentivizes both workers and factories to produce more. This situation is reflected by a shift to the right in the supply curve, indicating a larger quantity supplied at any given price level.
Additionally, increased profits or a decrease in the costs of production further motivate firms to increase output, which enhances the overall capacity utilization. Increased output levels lead to higher efficiency as fixed costs are spread over more units, and this may contribute to economic growth and higher wages in the labor market.