When Output Falls Below Full Employment Output, We Expect That

Multiple Choice

When output falls below full employment output, we expect that the:

A) wages and prices decrease as the short run aggregate supply curve shifts upward over time.
B) wages and prices decrease as short run aggregate supply curve shifts downward over time.
C) wages and prices increase as the long run aggregate supply curve shifts upward over time.
D) wages and prices decrease as the long run aggregate supply curve shifts downward over time.