Assuming That the Economy Is Currently in a Long-Run Equilibrium

Multiple Choice

Assuming that the economy is currently in a long-run equilibrium with real GDP equal to Y^*,a positive AD shock (with no change in the money supply) will eventually result in

A) no change in the price level.
B) an ongoing inflation in the economy.
C) a lower price level and GDP below its potential level.
D) a higher price level and GDP at its potential level.
E) a lower price level and GDP at its potential level.