In the AD/AS model, when the economy is in recession, it means that

a.The short run equilibrium level of GDP is below potential GDP.

b.The short run equilibrium level of GDP is above potential GDP.

c.The LRAS curve does not lie on top of the SRAS curve.

d.The economy is not in short run or long run equilibrium.

The AD curve is downward sloping because

a.The equilibrium level of GDP in the Aggregate Expenditure model decreases as the price level increases.

b.The equilibrium level of GDP in the Aggregate Expenditure model increases as planned investment increases.

c.The equilibrium level of GDP in the Aggregate Expenditure model increases as the price level increases.

d.The equilibrium level of GDP in the Aggregate Expenditure model increases as autonomous consumption increases.