The Short-Run and Long-Run Aggregate Supply Curves Remain Stable, and a Decrease

Multiple Choice

The short-run and long-run aggregate supply curves remain stable, and a decrease in aggregate demand occurs. What is the result in the short run?

A) An increase in the price level and real GDP will occur.
B) A period of expansion and a rise in the unemployment rate could occur.
C) A period of recession and a rise in the unemployment rate could occur.
D) The price level will fall but real GDP will remain the same.