Beginning at a Long- Run Equilibrium, an Increase in Aggregate

Multiple Choice

Beginning at a long- run equilibrium, an increase in aggregate demand

A) increases the price level and in the long run increases real GDP.
B) increases the price level, but in the long run there is no change in real GDP.
C) increases the price level and in the long run decreases real GDP.
D) decreases the price level and in the long run increases real GDP.
E) decreases the price level and in the long run decreases real GDP.