Suppose That for Several Periods the Aggregate Demand and Supply

Multiple Choice

Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. The central bank increases money growth as a result of an unannounced policy change. Under the assumption of adaptive expectations the likely short-run result is __________ output and __________ price level.

A) rising; a rising
B) rising; an unchanged
C) unchanged; a rising
D) unchanged; an unchanged