Suppose That There Is an Increase in the Costs of Production

Multiple Choice

Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left.If there is no policy response,then eventually

A) because unemployment is low,wages will be bid up and short-run aggregate supply will shift right.
B) because unemployment is low,wages will be bid down and short-run aggregate supply will shift right.
C) because unemployment is high,wages will be bid up and short-run aggregate supply will shift right.
D) because unemployment is high,wages will be bid down and short-run aggregate supply will shift right.