In the Aggregate Demand/aggregate Supply Model,an Economy Operating Below Its

Multiple Choice

In the aggregate demand/aggregate supply model,an economy operating below its long-run potential capacity will experience

A) falling real wages and resource prices that will increase SRAS,moving the economy back toward full employment.
B) rising interest rates that will increase SRAS,moving the economy back toward full employment.
C) inflation that will stimulate additional spending and thereby restore full employment.
D) a prolonged economic depression unless consumer optimism is increased.