When There Is Keynesian Unemployment in the New Keynesian Model

Multiple Choice

When there is Keynesian unemployment in the New Keynesian model, a Pareto optimum can be reached by

A) increasing the money supply or by increasing current government spending.
B) increasing the money supply or by decreasing current government spending.
C) decreasing the money supply or by increasing current government spending.
D) decreasing the money supply or by decreasing current government spending.
E) increasing nominal wages and increasing the money supply.