Refer to the Following Figure When Answering
Figure $c \rightarrow a$

Multiple Choice

Refer to the following figure when answering
Figure 15.2: The Labor Market
-In the stylized DSGE model for the labor market displayed in Figure 15.2, with sticky wages, expansionary monetary policy would cause a move from ________ because ________.

A) $c \rightarrow a$ of the natural rate of unemployment
B) $b \rightarrow a$ involuntary unemployment would be zero
C) $a \rightarrow d;$ other prices would rise
D) $a \rightarrow c;$ the labor market would clear
E) $c \rightarrow e;$ real wages would rise