Suppose the Economy Is in Long-Run Equilibrium

Multiple Choice

Suppose the economy is in long-run equilibrium. In a short span of time, there is a sharp decline in the stock market, a tax cut, an increase in the money supply and a decline in the value of the dollar. In the short run

A) the price level and real GDP will both rise.
B) the price level and real GDP will both fall.
C) neither the price leave nor real GDP will change.
D) All of the above are possible.