If an Unanticipated Increase in Aggregate Demand Results in an Output

Multiple Choice

If an unanticipated increase in aggregate demand results in an output beyond the economy's long-run capacity, long-run equilibrium will eventually be restored by

A) an increase in the economy's productive capacity (LRAS shifts to the right) .
B) higher resource prices, an increase in SRAS, and a decrease in the general level of prices.
C) higher resource prices, a decrease in SRAS, and an increase in the general level of prices.
D) a decrease in the natural rate of unemployment.