Starting from Short-Run Equilibrium,the Following Occurs: the U

Multiple Choice

Starting from short-run equilibrium,the following occurs: the U.S.dollar depreciates and wage rates rise.Moreover,the effect on the economy from the dollar depreciating is stronger than the effect on the economy from rising wage rates.What is the effect on the price level and Real GDP in the short run?

A) The price level falls and Real GDP falls.
B) The price level rises and Real GDP falls.
C) The price level falls and Real GDP rises.
D) The price level rises and Real GDP rises.
E) none of the above