-Refer to the Above Graph

Multiple Choice

-Refer to the above graph.If the economy moves from point B₃ to point C₃ because of an increase in aggregate demand,then:

A) Refer to the above graph.If the economy moves from point B₃ to point C₃ because of an increase in aggregate demand,then:
B) real wages will rise,reducing profits and thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to B₃.
C) nominal wages will rise,reducing profits and thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to B₃.
D) nominal wages will rise,reducing profits and thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to C₂.