Everything else is held constant, when output below the natural rate level, wages will begin to fall increasing short-run aggregate supply.
The short-term aggregate supply curve (SRAS) gives you an idea of how all companies in the economy react to price stability. When prices stagnate, the SRAS curve rises. The SRAS curve shows that the higher the price level, the higher the production. There are two important things to note about the SRAS.
On the one hand, it represents the short-term relationship between price levels and the services offered. At least one price is inflexible, which increases aggregate supply in the short term.
Second, SRAS also shows that there is a short-term trade-off between inflation and unemployment. Higher inflation is also associated with lower unemployment in the short term, as higher inflation leads to more production.
Learn more about short-run aggregate here: https://brainly.com/question/15599594
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