Use the Figure Below to Answer the Following Question(s)

Multiple Choice

Use the figure below to answer the following question(s) . Figure 12-2
Refer to Figure 12-2. When the economy is operating at point a, reliance on the self-correcting mechanism will

A) result in higher resource prices and a shift to the left in the SRAS curve.
B) result in lower resource prices and a shift to the right in the SRAS curve.
C) lead to lower interest rates and a shift to the right in the AD curve.
D) lead to higher interest rates and a shift to the left in the AD curve.
E) do both b and c.