Refer to the Following Figure When Answering
Figure $a \rightarrow e;$

Multiple Choice

Refer to the following figure when answering
Figure 15.3: The Labor Market
-In the stylized DSGE model for the labor market displayed in Figure 15.3, with sticky prices, a monetary contraction would move the labor market from ________ because ________.

A) $a \rightarrow e;$ of $A D$ , and therefore real GDP falls
B) $a \rightarrow d;$ nominal wages and inflationary expectations rise
C) $b \rightarrow a;$ real wages fall, so workers supply less labor
D) $a \rightarrow c;$ future consumption falls, increasing labor supply
E) $e \rightarrow c;$ the labor market clears, but output markets do not