An Economy Is in Long-Run Equilibrium When Aggregate Supply Unexpectedly

Multiple Choice

An economy is in long-run equilibrium when aggregate supply unexpectedly decreases. Then real GDP (ceteris paribus) will be

A) above potential GDP.
B) below potential GDP.
C) equal to potential GDP.
D) either above, below, or equal to potential GDP depending on the position of the aggregate demand curve.
E) either above or equal to potential GDP depending on the position of the aggregate demand curve.