Suppose the aggregate demand curve in the country of Boonton shifts left, decreasing short - run output from $10900 to $10820 .
According to the neoclassical perspective, what is the most likely effect of this event on equilibrium price and long - run equilibrium output?
a. Equilibrium price increases and equilibrium output decreases
b. Equilibrium price increases with no change in equilibrium output
c. Equilibrium price decreases with no change in equilibrium output
d. Equilibrium price decreases and equilibrium output increases