5. Shifts of the aggregate supply curve which of the following would properly be classied as an unfavorable supply shock? O A hurricane hits a major city, destroying factories, roads, airports, and homes. Because the city was a major port and transportation huh, goods and services need to he rerouted, increasing transportaljon costs for rms nationwide. O The government introduces a set of market reforms that strengthens property rights and makes it easier and safer for buyers and sellers to write contracts. 0 There is an increase in government spending. 0 The interest rate decreases. spurring investment spending. 0 There is a technological improvement that allows rms to reduce their costs of production permaneny. The following graph shows the shortrun aggregate supply curve {SEAS} and longrun aggregate supply curves (LHAS) for an economy. Suppose the world price of oil increases rapidly without warning and is expected to remain at the newI high level for many years, making it more expensive for all rms to produce goods and services. Illustrate the long-term elect of this change by shifting one or both of the curves on the following graph. If you don't believe there will be any long- ten'n effects, leave the curves where they are. Note: Select and drag one or both of the curves to the desired position. Curves will snap into posion, so if you try to move a curve and it snaps back to its original position. just drag it a little farther.