Which of the Following Statements Is Correct According to Both

Multiple Choice

Which of the following statements is correct according to both new classical and new Keynesian economists?

A) An unexpected increase in the money supply will increase only prices in the short run, whereas an unexpected increase in government spending will increase both prices and output.
B) An unexpected increase in government spending will increase both prices and output in the short run.
C) An unexpected increase in government spending will increase only output in the short run.
D) Unexpected increases in the money supply or in government spending will increase only prices in the short run.