If an Economy Is Operating Along the Keynesian Section of the Aggregate

Multiple Choice

If an economy is operating along the Keynesian section of the aggregate supply curve,then an increase in aggregate demand will result in:

A) an increase in inflation and an increase in real GDP.
B) no change in the price level and a decrease in unemployment.
C) a decrease in the price level and a decrease in unemployment.
D) no change in the price level and an increase in unemployment.
E) no change in the price level, but the effect on real GDP is indeterminate.