According to the Inflation Parable Discussed in the Text,a Positive

Multiple Choice

According to the inflation parable discussed in the text,a positive shock to spending:

A) does not affect price and output at first,but in the long run both output and price increase.
B) increases both price and output at first but neither price nor output changes in the long run.
C) increases price at first but in the long run only increases output.
D) increases output at first but in the long run only increases price.