There is an indirect relationship in the short run between actual price level and real GDP

Autonomous consumption is consumer spending which is based on income levels

Indicate whether the statement is true or false

If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?

a. an economic boom b. highly attractive profit margins c. output less than the economy's long-run potential d. a sharp increase in imports