When the Output of an Economy Exceeds the Economy's Full-Employment

Multiple Choice

When the output of an economy exceeds the economy's full-employment capacity,

A) aggregate supply will increase until the economy can produce the output at the existing price level.
B) the actual rate of unemployment will be less than the natural rate.
C) wage rates and resource prices will tend to fall.
D) interest rates will decline and help direct the economy back to full employment.