Suppose the Economy Is Currently in Long-Run Equilibrium with Real

Multiple Choice

Suppose the economy is currently in long-run equilibrium with real GDP equal to potential GDP.A positive demand shock,that is not validated by the Bank of Canada,will eventually result in

A) no change in the price level.
B) an ongoing inflation in the economy.
C) a lower price level and real GDP below potential output.
D) a higher price level and GDP at potential output.
E) an ongoing deflation in the economy.