Aggregate price LRAS SRAS level P1 E1 AD YP Y1 Real GDP potential output Reference: Ref 13-3 Figure: Short- and Long-Run Equilibrium II If the economy naturally adjust to the equilibrium Which action would occur? Select one: O a. Decrease government spending to close the inflationary gap. O b. Increase government spending to close the recessionary gap. O c. Decrease in nominal wages to close the inflationary gap. O d. Increase in nominal wages close the inflationary gap. Next page