Consider the Basic AD/AS Model

Multiple Choice

Consider the basic AD/AS model.Suppose firms are currently producing beyond their normal capacity.A change in AD leads to a relatively

A) large change in price level and a large change in real GDP.
B) large change in price level and a small change in real GDP.
C) small change in price level and a large change in real GDP.
D) small change in price level and a small change in real GDP.
E) no change in both price and output.