If the actual price level is above the expected price level, then workers' actual real wage will be below their expected real wage.

A French citizen lives in Detroit, but works in Windsor, Canada; his income is counted in U.S. GDP

Indicate whether the statement is true or false

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.