Econia's Unemployment Rate Is 7

Multiple Choice

Econia's unemployment rate is 7.5%, and its natural rate of unemployment is 4%. For Econia to return its economy to full employment:

A) the government could reduce the money supply so that the real value of money rises.
B) the government could lower taxes to stimulate aggregate demand.
C) it could be patient while prices rise enough to cause the labor market to move to equilibrium.
D) it could be patient while wages rise to attract more workers to labor markets and increase production.