Suppose the economy is in long-run equilibrium

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Suppose the economy is in long-run equilibrium. If there is an increase in the supply of labor as well as an increase in the money supply, then we would expect that in the short-run,

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

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

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

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

Reference no: EM131166546

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