Of the Five Endogenous Variables in the Dynamic Model of Aggregate

Multiple Choice

Of the five endogenous variables in the dynamic model of aggregate demand and aggregate supply, which are the nominal variables that will change in long-run equilibrium if the central bank changes its inflation target?

A) Y_t, r_t, and i_t
B) Y_t, i_t, and E_tπ_{t + 1}
C) π_t, i_t, and E_tπ_{t + 1}
D) r_t, π_t, and i_t