Econia's Unemployment Rate Is 2%, and Its Natural Rate of Unemployment

Multiple Choice

Econia's unemployment rate is 2%, and its natural rate of unemployment is 4.5%. Which of the following describes a way that Econia's economy could return to its natural rate of unemployment?

A) Over time, the wage rates will drop, which causes workers to drop out of the labor force.
B) The government might reduce taxes to increase the purchasing power of consumers.
C) The government might increase the money supply to stimulate the economy.
D) Over time, wages will rise, which causes the costs of production to rise and output to fall.