In explaining their relative income status, either poor families don't work enough, or are paid too little

A rise in the overall price level means that:

A. a given number of dollars won't buy as much real goods and services. B. dollar-denominated assets have lost their value. C. the cost of living has gone down. D. None of these is true.

Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary