Suppose the economy is currently in short-run equilibrium at an output below potential level of output. If there is NO government policy, what will happen in the long run? a. Nominal wages will fall, increasing output and lowering overall prices. b. Nominal wages will fall, increasing output and overall prices. c. Nominal wages will rise, decreasing output and raising overall prices. d. Nominal wages will rise, decreasing output and overall prices.

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