7. Questions and Problems 10 Suppose the government undertakes an expansionary fiscal policy measure that raises aggregate demand, but individuals incorrectly anticipate the policy measure (bias upward). Assume that the economy is initially in long-run equilibrium. Complete the following sentences to describe the changes in short-run and long-run prices and Real GDP. Under this scenario, the shift of the AD curve will be price level will and Real GDP will . Eventually, the somewhat, though not all the way to its original level, while Real GDP than the leftward shift of the SRAS curve, so in the short run, the curve will shift rightward so that the long-run price level will return to its long-run position. Grade It Now Save & Continue Continue without saving