The Short- Run Multiplier Is Equal to 3, Real GDP

The short- run multiplier is equal to 3, real GDP equals potential GDP of $8,000, and the price level is equal to 100. Suppose that government expenditure decreases by $200. The long- run effect of the decrease in government expenditure changes real GDP by

A) an increase of $600.
B) nothing; that is, in the long run real GDP equals $8,000.
C) a decrease of $600.
D) a decrease of $200 because the long- run multiplier is 1.