When Output Exceeds the Full Employment Level of Output, We

Multiple Choice

When output exceeds the full employment level of output, we expect that the

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