Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Aggregate Supply
-(Figure: Aggregate Supply) Refer to Figure: Aggregate Supply. If the economy is at point E, nominal wages will _____, and the short-run aggregate supply curve will shift _____ until actual potential is _____ potential output.

A) increase; left; equal to
B) increase; right; greater than
C) decrease; right; equal to
D) decrease; right; less than