Consider the Basic AD/AS Model

Multiple Choice

Consider the basic AD/AS model.A rise in an input price like the wage rate would be expected to create a new macroeconomic equilibrium,which in comparison to the original equilibrium,has a price level that is

A) higher and a real GDP that is higher.
B) higher and a real GDP that is lower.
C) higher and a real GDP that is the same.
D) lower and a real GDP that is higher.
E) lower and a real GDP that is lower.