Suppose the Economy Is in Long-Run Equilibrium

Multiple Choice

Suppose the economy is in long-run equilibrium.Concerns about pollution cause the government to significantly restrict the production of electricity.At the same time,taxes fall.In the short-run

A) real GDP will rise,and the price level might rise,fall,or stay the same.
B) real GDP will fall,and the price level might rise,fall,or stay the same.
C) the price level will rise,and real GDP might rise,fall,or stay the same.
D) the price level will fall,and real GDP might rise,fall,or stay the same.