If an economy has aggregate price levels that are increasing, but the wage rate stays the same because of downward wage stickiness, what would be the economic consequences? a) Businesses would need to hire more employees and the quantity of real GDP supplied would increase.
b) Businesses would fire some employees as labor becomes too expensive and the quantity of real GDP supplied would decrease.
c) New firms would enter to make a profit.
d) New businesses would enter the economy, hire employees and as a consequence the quantity of real GDP supplied would increase.