Final answer:
If nominal wages fall and productivity rises, the aggregate supply curve will shift rightward. The correct answer is B.
Step-by-step explanation:
In this scenario, if nominal wages fall and productivity rises, the aggregate supply curve will shift rightward. This is because a fall in nominal wages makes labor cheaper for firms, leading to an increase in the quantity of labor demanded. The rise in productivity means that firms can produce more output with the same amount of labor.
By increasing both the quantity of labor and productivity, the aggregate supply curve shifts rightward, indicating that firms are willing and able to produce a higher quantity of output at each price level.
Therefore, the correct answer is B. supply curve will shift rightward.