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Old 04-11-2008, 02:10 AM
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economics help: Aggregate Supply/Demand?

Please help me to answer:
Suppose the US Economy is in Long Run equilibrium. Then suppose the value of the US dollar increases. At the same time, people in the US revise expectations so that the expected price level falls. We would expect in the short run

a) real GDP to increase, price level could increase, decrease, or stay the same
b) real GDP to decrease, price level could increase, decrease, or stay the same
c) price level to increase, real GDP could increase, decrease, or stay the same
d) price level to decrease, real GDP could increase, decrease, or stay the same
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