Consider the AD/AS Model After Factor Prices Have Fully Adjusted

Multiple Choice

Consider the AD/AS model after factor prices have fully adjusted to output gaps.An increase in the level of potential output,with aggregate demand constant,will

A) affect only the price level.
B) decrease real GDP and the price level.
C) affect only the level of real GDP.
D) increase real GDP and lower the price level.
E) decrease real GDP and raise the price level.