How does

a decreasea$$decrease

in the price level affect the quantity of real GDP supplied in the long$$ run?

Part $2$

A$.$

In the long$$ run,

a decreasea$$decrease

in the price level will increase real GDP$.$

B$.$

In the long$$ run,

a decreasea$$decrease

in the price level increases$$ inflation, which will decrease real GDP$.$

C$.$

Changes in the price level do not affect the level of GDP in the long run.

D$.$

In the long$$ run,

a decreasea$$decrease

in the price level decreases$$ inflation, which will decrease real GDP$.$

$...$

Question content area right

Part $1$

Long$-$Run Aggregate Supply

$103113123$Real$$GDP$($trillions$$of$$$$)$Price$$level$($GDP$$deflator$)$

LRAS $21$LRAS$21$

LRAS $22$LRAS$22$

LRAS $23$LRAS$23$