In the AD-AS Model,stagflation Does Not Persist,because the Working of the Self-Correcting

Multiple Choice

In the AD-AS model,stagflation does not persist,because the working of the self-correcting mechanism of the economy ___________ the level of output and ___________ the price level until the economy eventually returns to a long-run equilibrium state,where actual output ___________ potential output.

A) decreases;increases;equals
B) increases;decreases;exceeds
C) decreases;decreases;falls short of
D) increases;decreases;equals
E) decreases;increases;exceeds