Which of These Changes Is Observed in an Economy When

Multiple Choice

Which of these changes is observed in an economy when a recessionary gap is closed in the long run?

A) an increase in the inflation rate and a decrease in the unemployment rate
B) an increase in the level of output and a decrease in the price level
C) an increase in both the rate of output and the price level
D) a decrease in both the rate of output and the price level
E) a decrease in the inflation rate and an increase in the unemployment rate