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Research and Development (SRAS, LRAS, PPC)

APMACR-GMW3HH

New research on making the nation more energy efficient continues to be a great success for our country.

This will most likely result in which of the following changes in the short-run and long-run aggregate supply curves and the production possibilities curve?

A

SRAS decrease, LRAS no change, PPC no change

B

SRAS decrease, LRAS decrease, PPC shifts left

C

SRAS increase, LRAS no change, PPC shifts left

D

SRAS increase, LRAS increase, PPC no change

E

SRAS increase, LRAS increase, PPC shifts right