Which situation would most likely be occurring if a country's output gap is positive?

a) Wages are falling due to the higher number of employed workers, resulting in a lower inflation rate.

b) Potential GDP has likely increased, meaning that the country is experiencing economic growth.

c) Potential GDP has likely decreased, resulting in an increase in the unemployment rate.

d) Unemployment will remain unchanged since existing workers will simply be working harder.

e) There is a higher demand for workers and resources and unemployment is likely to fall.