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AP® Macroeconomics

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A Natural Disaster (SRAS, LRAS, PPC)

APMACR-O7E@WW

A natural disaster, like a hurricane would most likely cause short-run and long-run aggregate supply curves and the production possibilities curve to change in which of the following ways?

A

SRAS decrease, LRAS no change, PPC shifts right

B

SRAS decrease, LRAS decrease, PPC shifts right

C

SRAS decrease, LRAS decrease, PPC shifts left

D

SRAS increase, LRAS no change, PPC no change

E

SRAS increase, LRAS increase, PPC shifts left