Suppose the Economy Is Self-Regulating,the Price Level Is 120,the Quantity

Multiple Choice

Suppose the economy is self-regulating,the price level is 120,the quantity demanded of Real GDP and the quantity supplied of Real GDP in the short run both equal $5.7 trillion,and the quantity supplied of Real GDP in the long run is $5.2 trillion. Given all of this information,we can conclude that the economy ____________ in short run equilibrium,and that the price level in long run equilibrium will be _____________ than 120.

A) is not; less
B) is; more
C) is; less
D) is not; more