Explain whether each of the following events would cause a movement along or a shift in the position of the LRAS curve, other things being equal. In each case, explain the direction of the movement along the curve or shift in its position.
a. Last year, businesses invested in new capital equipment, so this year the nation's capital stock is higher than it was last year.
b. There has been an 8 percent increase in the quantity of money in circulation that has shifted the AD curve.
c. A hurricane of unprecedented strength has damaged oil rigs, factories, and ports all along the nation's coast.
d. Inflation has occurred during the past year as a result of rightward shifts of the AD curve.