Consider an Economy Initially at Long-Run Equilibrium with Output (Y)equal

Multiple Choice

Consider an economy initially at long-run equilibrium with output (Y) equal to potential output (Y*) .If the SRAS curve is positively sloped,then an increase in the demand for Canadian-made goods in Europe will lead to ___________ in the price level,in the short run.In the long run,the SRAS curve will shift to the left and the equilibrium will be at _________.

A) an increase;Y = Y*
B) a decrease;Y > Y*
C) no change;Y = Y*
D) an increase;Y > Y*
E) a decrease;Y = Y*