According to a New Keynesian Theorist,a Correctly Anticipated Increase in Aggregate

Multiple Choice

According to a new Keynesian theorist,a correctly anticipated increase in aggregate demand will

A) cause the price level to increase by a greater amount in the short run than what a new classical rational expectations theorist would predict.
B) cause the price level to increase by a smaller amount in the short run than what a new classical rational expectations theorist would predict.
C) cause the price level to increase by the same amount in the short run that a new classical rational expectations theorist would predict.
D) leave the price level unchanged in the short run,but Real GDP will increase more than what a new classical theorist would predict.
E) leave the price level unchanged in the short run,but Real GDP will increase less than what a new classical theorist would predict.