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

question 59

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