Assume that Country A is initially in a long-run equilibrium. Now, suppose that there is anincreasein housing prices. According to thesticky-wagetheory, which of the statements below describes the economy's transitionin theshort run?

Group of answer choices

As the price level falls, firms pay a higher real wage to workers, which leads to lower profits and a decrease in quantity of output supplied.

As the price level falls, firms pay a lower real wage to workers, which leads to higher profits and an increase in quantity of output supplied.

As the price level rises, firms pay a higher real wage to workers, which leads to lower profits and a decrease in quantity of output supplied.

As the price level rises, firms pay a lower real wage to workers, which leads to higher profits and an increase in quantity of output supplied.