Based on Your Understanding of the AS / AD Model,which

Multiple Choice

Based on your understanding of the AS / AD model,which of the following is an INCORRECT statement about the short-run adjustment process for the macroeconomy?

A) output in excess of the natural level leads to higher prices.
B) a reduction in employment leads to lower prices.
C) an increase in demand increases output.
D) an increase in output above the natural level leads to higher nominal wages.
E) none of the above