Evaluate the impact on the LRAS curve if a country loses access to a significant portion of its natural resources due to environmental regulations.

• A. The LRAS curve shifts to the left, indicating a decrease in potential output.
• B. The LRAS curve becomes horizontal, indicating no change in potential output.
• C. The LRAS curve remains unchanged, as natural resources do not affect potential output.
• D. The LRAS curve shifts to the right, indicating an increase in potential output.

Answer: (A)