Carefully study the neoclassical AD-AS graph above. It shows a situation where aggregate demand shifted to the left (from AD1 to AD2), moving the equilibrium from point A to point B. Then, in response to this, short run aggregate supply shifts to the right (from SRAS1 to SRAS2), moving the equilibrium from point B to point C. Here is the question: After AD shifts, why does SRAS shift in the opposite direction some time later? a. Because human capital per person has declined. b. Because rational expectations cause sellers to expect that they have to cut prices in order to adapt to the AD shift. c. Because prices are flexible in the long run in this model, and the AD shift resulted in lower wages, which enabled businesses to hire more workers and expand. d. Because aggregate supply is stable in this model, meaning that it is not possible to have a permanent equilibrium outside of the LRAS