According to the New Classical Economists, with Rational Expectations, an Increase

Multiple Choice

According to the New Classical economists, with rational expectations, an increase in the money supply will

A) lead only to an increase in prices in both the short run and the long run.
B) lead to an increase in the equilibrium level of income in the short run but to no change In the equilibrium level of income in the long run.
C) lead to a fall in prices but to no change in money wages.
D) lead to a rightward shift in the long-run aggregate supply curve.