Suppose the economy is in long-run equilibrium. Using the monetarist model, what happens to the price level and to Real GDP in in the long run as a result of an increase in velocity?
a. The price level falls and there is no change in Real GDP.
b. The price level rises and there is no change in Real GDP.
c. The price level remains constant and Real GDP rises.
d. The price level falls and Real GDP rises.
e. none of the above