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a. An increase in the capital stock causes real planned production to rise at any given price level, so the LRAS curve shifts rightward. b.
a. An increase in the capital stock causes real planned production to rise at any given price level, so the LRAS curve shifts rightward. b. An increase in the quantity of money causes the aggregate demand to shift rightward, which generates a movement upward along the LRAS curve. c. This reduction in the capital stock, which also will lead to higher energy prices, causes real planned production to decline at any given price level, so the LRAS curve shifts leftward. d. When the price level rises with inflation, there is a movement of the AD curve upward along the LRAS curve
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