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. Then the central bank increases money growth as the result of an unannounced policy change. Under New Classical assumptions 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