If Workers Push for Wages That Are Beyond What Productivity

Multiple Choice

If workers push for wages that are beyond what productivity gains can justify ________.

A) a positive output gap ensues which will lead to lower unemployment if the Federal Reserve does not act
B) a temporary negative supply shock ensues driving up prices
C) and the Federal Reserve eases monetary policy aimed at increasing aggregate demand to counter the negative supply shock,the inflation rate will decrease
D) all of the above
E) none of the above