Consider the AD/AS Macro Model

Multiple Choice

Consider the AD/AS macro model.Suppose there is an increase in aggregate demand and,simultaneously,a decrease in aggregate supply.The result will be a

A) rise in real GDP but price level changes will be indeterminate.
B) rise in real GDP and a rise in the price level.
C) rise in real GDP and a fall in the price level.
D) an indeterminate change in real GDP and a rise in the price level.
E) an indeterminate change in real GDP and a fall in the price level.