Exhibit 14-5 -Refer to the Graph in the Exhibit.Suppose the Economy Is

Multiple Choice

Exhibit 14-5

-Refer to the graph in the exhibit.Suppose the economy is in equilibrium, where AD = SRAS.How will the price level be affected, assuming no monetary action is taken?  

A)  Prices will increase. 
B)  Prices will decrease. 
C)  Prices will remain as they are indefinitely. 
D)  Prices will likely go into negative territory.