The Efficiency Wage Theory of Aggregate Supply Implies That

The efficiency wage theory of aggregate supply implies that

A) the AS-curve is vertical
B) paying employees higher wages won't induce them to work harder
C) even unanticipated changes in monetary or fiscal policy have no effect on the level of output
D) since the cost of changing wages and prices is low, wages can easily be adjusted in proportion to price changes to maintain full employment
E) none of the above