Suppose the Economy Is in Long-Run Equilibrium

Multiple Choice

Suppose the economy is in long-run equilibrium. In a short span of time, there is a sharp decline in the stock market, a tax cut, an increase in the money supply, and a decline in the value of the dollar. In the short run, what would we expect to happen?

A) the price level and real GDP both to rise
B) the price level and real GDP both to fall
C) the price level and real GDP both to stay the same
D) The price level and real GDP may rise, fall, or remain the same.