A Deep Recession Hits the World Economy,and Real GDP in the Rest

Multiple Choice

A deep recession hits the world economy,and real GDP in the rest of the world decreases.In Australia,

A) aggregate supply and aggregate demand both increase,and the price level rises.
B) aggregate supply and aggregate demand both decrease,and the price level rises.
C) aggregate demand decreases while aggregate supply does not change,and the price level falls.
D) aggregate supply decreases while aggregate demand does not change,and the price level rises.
E) aggregate supply increases and aggregate demand decreases,so the effect on the price level is uncertain.