Which of the following statements is correct for an economy where GDP is currently at full employment GDP and there is an increase in AD?

a.

The changes to the price level and GDP are hard to determine without knowing the exact value of full employment GDP.

b.

The price level will rise and so will the level of GDP because full employment GDP will adjust to the new level of demand in the economy.

c.

There will be some increase in GDP and the price level but the increase in GDP will be temporary and we expect further price level increases to follow.

d.

There will be no increase in GDP as the economy is already at full employment.