Modern machinery did all but one of the following things.

driving production costs up
employed more people to create more products
made manufacturing less expensive
created a shortage of raw materials

The answer is A. Drove production costs up. It drove production costs down, because they were able to take less time to make the products as well as less materials because 1) standardized parts were invented around the same time, and 2) they didn't have people preparing everything so materials weren't wasted.

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