Suppose an economy starts off in equilibrium. Which pair of events will certainly lead to a rise in the general price level and a fall in real output?
- Aaggregate demand decreases and short-run aggregate supply decreases
- Baggregate demand decreases and short-run aggregate supply unchanged
- Caggregate demand increases and short-run aggregate supply decreases
- Daggregate demand unchanged and short-run aggregate supply decreases