Suppose That the Saving Rate in Canada Increases,and Firms Use

Multiple Choice

Suppose that the saving rate in Canada increases,and firms use the increased saving to invest.What will happen to long-run aggregate supply?

A) The LRAS will not shift, but the economy moves along the LRAS curve to a lower price level.
B) It will increase.
C) It will decrease.
D) The LRAS will not shift, but the economy moves along the LRAS curve to a higher price level.