Everything else held constant,when output is ________ the natural rate level,wages will begin to ________,increasing short-run aggregate supply.
A)above;fall
B)above;rise
C)below;fall
D)below;rise

Question

Quizplus · Accepted Answer

When output is below the natural rate level, wages will begin to fall, leading to a decrease in production costs and an increase in short-run aggregate supply.

Everything Else Held Constant,when Output Is ________ the Natural Rate