suppose that this economy

price level SRAS A V potential output Real GDP Reference: Ref 13- (Figure: Fiscal Policy II) Suppose that this economy is in equilibrium at Ey. If there is an increase in government transfers, then: AD, will shift to the right, causing an increase in the price level and an increase in real GDP. b) AD2 will shift to the right, causing an increase in the price level and an increase in real GDP. AD2 will shift to the left, causing a decrease in the price level and a decrease in the real GDP. d) AD, will shift to the left, causing a decrease in the price level and a decrease in real GDP