According to the Aggregate Demand and Aggregate Supply Model, in the Long

Multiple Choice

According to the aggregate demand and aggregate supply model, in the long run what is the impact of an increase in the money supply?

A) It lowers both the price level and real GDP.
B) It increases GDP, but it does not change the price level.
C) It increases the price level, but it does not change real GDP.
D) It increases both the price level and real GDP.