Suppose the economy is operating in long-run equilibrium. If a positive demand shock hits the economy, we would expect:
A.
a short-run increase in real GDP and price level, and a long-run decrease in real GDP and an increase in price level.
B.
a short-run increase in real GDP and price level, and a long-run increase in real GDP and an increase in price level.
C.
a short-run increase in real GDP and price level, and a long-run decrease in real GDP and a decrease in price level.
D.
a short-run increase in real GDP and price level, and a long-run increase in real GDP and a decrease in price level.