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In 1981, we had real GDP of 6,617.7, and in 1982 we had real GDP of 6,491.3. Further, in 1981, the aggregate price level (as measured by the GDP deflator) was 48.52, and in 1982, the aggregate price level was 51.53. According to our aggregate supply (S)/demand(D) analysis, which of the following must have occurred over 1982 (relative to 1981)?
A) decrease in Agg S
B) decrease in Agg D
C) increase in Agg S
D) no shifts could have occurred.
E) increase in Agg D
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