If the stock market crashes, reducing real wealth, at the same time that the energy prices are falling, what will likely happen to real GDP and the price level?
A. The price level falls, but the change in real GDP is indeterminate
B. Real GDP and the price level fall
C. Real GDP rises, but the price level falls
D. Real GDP falls, but the change in the price level is indeterminate
Answer: A
Microeconomics
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