If an Economy Operates at a Short-Run Equilibrium Output That

Multiple Choice

If an economy operates at a short-run equilibrium output that exceeds its long-run capacity, which of the following will be most likely to direct the economy toward full employment?

A) Improvements in technology will shift the LRAS curve to the right.
B) Resource prices will increase, causing the SRAS curve to shift to the left.
C) The unemployment rate will increase, causing the economy's aggregate supply curve to shift to the right.
D) Interest rates will decline, shifting the aggregate demand curve to the right.