In the Long Run, Increases in the Money Supply Have

Multiple Choice

In the long run, increases in the money supply have no effect on the level of output because prices and wages will

A) rise as GDP exceeds potential output, causing real interest rates to rise and output to fall to its original level.
B) fall as GDP exceeds potential output, causing real interest rates to rise and output to fall to its original level.
C) rise as GDP exceeds potential output, causing real interest rates to fall and output to fall to its original level.
D) fall as GDP exceeds potential output, causing real interest rates to fall and output to fall to its original level.