As the economy moves down and to the left along a short-run aggregate supply curve, it:
a. moves up and to the right along the short-run Phillips curve.
b. moves up and to the left along the short-run Phillips curve

Suppose that there is a decrease in the costs of production that shifts the short-run aggregate-supply curve right. If there is no policy response, then eventually

a) because unemployment is high, wages will be bid up and short-run aggregate-supply curve will shift right. b) because unemployment is high, wages will be bid down and short-run aggregate-supply curve will shift right. c) because unemployment is low, wages will be bid up and short-run aggregate-supply curve will shift right. d) because unemployment is low, wages will be bid up and short-run aggregate-supply curve will shift left.

With respect to efficiency wage models, the efficiency of workers depends

a. positively on the money wage they are paid. b. positively on the real wage they are paid. c. inversely on the age of the workers. d. positively on the unemployment rate.