A rapid increase in successful research and development projects for the nation will most likely result in which of the following changes in the short-run and the long-run aggregate supply curves and the production possibilities curve?

A rapid increase in successful research and development projects for the nation will most likely result in which of the following changes in the short-run and the long-run aggregate supply curves and the production possibilities curve?


SRAS LRAS Pro.Poss



A. Decrease No change No change
B. Decrease Decrease Shift inward
C. Increase No change Shift inward
D. Increase Increase No change
E. Increase Increase Shift outward





Answer: E


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