Suppose the economy is in long-run equilibrium. If there is a sharp increase in commodity price as well as in increase in government spending, then in the short run, a. price level will rise but real GDP will be unaffected. b. price level will rise but real GDP might rise, fall, or stay the same. Page 5 c. price level might rise, fall, or stay the same but real GDP will rise. d. both price level and real GDP will rise