When the AD and SAS Curves Intersect at a Level

Multiple Choice

When the AD and SAS curves intersect at a level of real GDP which exceeds potential GDP and there is no government policy undertaken, which of the following will occur?

A) The AD curve shifts rightward because the Fed decreases the money supply.
B) The SAS curve shifts leftward because the money wage rate rises.
C) The SAS curve shifts leftward because the money wage rate falls.
D) The AD curve shifts leftward because the money wage rate rises.