A severe, sustained increase in oil prices would most likely cause short-fun and long-run aggregate supply curves and the production possibilities curve to change in which of the following ways?
Short-Run Long-Run Production
Aggregate Aggregate. Possibilities Supply Curve Supply Curve Curve
_________________________________
(A) Decrease; No change; Shift outward
(B) Decrease; Decrease; Shift outward
(C) Decrease; Decrease; Shift inward
(D) Increase; No change; No change
(E) Increase; Increase; Shift inward