14. (LO 4) Suppose that the economy of Bunderland is initially at full-employment equilibrium. Explain, in terms of shifts in AD or AS, how the following results could occur.

a) Real GDP increases; the price level increases; the economy is experiencing an inflationary gap.

b) Real GDP increases; the price level decreases; the economy is experiencing an inflationary gap.

c) Real GDP decreases; the price level increases; the economy is experiencing an inflationary gap.