If Wages Are Sticky, Then a Greater Than Expected Increase

Multiple Choice

If wages are sticky, then a greater than expected increase in the price level

A) raises the real costs of production, so the short-run aggregate supply curve shifts left.
B) raises the real costs of production, so the aggregate quantity of goods and services declines.
C) reduces the real costs of production, so the short-run aggregate supply curve shifts right.
D) reduces the real costs of production, so the aggregate quantity of good and services rises.