If an Adverse Shock Reduces the Level of Aggregate Demand

Multiple Choice

If an adverse shock reduces the level of aggregate demand, it is likely to lead to

A) lower Real GDP ("RGDP") and a higher price level ("PI") .
B) higher Real GDP ("RGDP") and a higher price level ("PI") .
C) lower Real GDP ("RGDP") and a lower price level ("PI") .
D) higher Real GDP ("RGDP") and a lower price level ("PI") .