Suppose you live in an Eastern European country and are writing a letter to your cousin who has lived in the United States for many years. Try to get your cousin to come visit you. Be sure to remind him or her of all the positive changes that have occurred since the collapse of communism.

What does it signify if point 1 shifts down and to the right? a. the price level and the real gdp are falling. b. the real gdp is falling, and supply is increasing. c. the price level is rising, and production is increasing. d. the price level is falling, and demand and the real gdp are rising.