Which of the Following Best Explains What Will Happen If

Multiple Choice

Which of the following best explains what will happen if government purchases decline?

A) For any given rate of inflation, real GDP will decrease.
B) For any given rate of inflation, real GDP will increase.
C) For any given rate of inflation, potential GDP will increase.
D) There will be an upward movement along the AD curve.
E) There will be a downward movement along the AD curve.