Question: At 1 2 : 0 0 midnight April 1 , 2 0 1 9 an error in the Federal Reserve main computer causes $ 1

At 12:00 midnight April 1,2019 an error in the Federal Reserve main computer causes $1,000 to be withdrawn from every citizens' checking account, thereby decreasing the US consumers real wealth. Use the AD/AS model to determine what happens to real GDP and the price level as a result. Assume an upward sloping AS curve, and assume the AS curve does not shift. a. Real GDP increases and the price level increases. b. Real GDP decreases and the price level decreases. c. Real GDP increases, but the price level decreases. d. Real GDP decreases, but the price level increases. e. Real GDP may increase or decrease, but the price level unambiguously increases.

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