Suppose That the Money Supply Increases

Multiple Choice

Suppose that the money supply increases. In the short run, this increases prices according to

A) both the short-run Phillips curve and the aggregate demand and aggregate supply model.
B) neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
C) the short-run Phillips curve, but not according to the aggregate demand and aggregate supply model.
D) the aggregate demand and aggregate supply model but not according to the short-run Phillips curve.