Optimism Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. Refer to Optimism. How is the new long-run equilibrium different from the original one? (hint: what will happen to output and the price level AFTER the economy self-corrects) - both price and real GDP are higher - both price and real GDP are lower. - the price level is the same and GDP is higher. - the price level is higher and real GDP is the same