Suppose there is an increase in AD, causing a price level increase;
Suppose there is an increase in AD, causing a price level increase;
what will happen in the long run as prices adjust?
A. The price level will go back to its previous level
B. The price level will rise even further
C. The price level will fall to a level below its previous level
D. The price level will fall slightly to a level somewhere between its current level and the original level.