Suppose the Economy Is in Long-Run Equilibrium

Multiple Choice

Suppose the economy is in long-run equilibrium.Senator Aviary succeeds in getting a major new highway project for his state.At the same time,Senator Green succeeds in getting major new restrictions on logging enacted.In the short run,we would expect

A) real GDP will rise and the price level might rise, fall, or stay the same.
B) real GDP will fall and the price level might rise, fall, or stay the same.
C) the price level will rise, and real GDP might rise, fall, or stay the same.
D) the price level will fall, and real GDP might rise, fall, or stay the same.