Starting from a Position of Macroeconomic Equilibrium at the Full-Employment

Multiple Choice

Starting from a position of macroeconomic equilibrium at the full-employment level of real GDP, in the short run an unanticipated increase in the money supply will

A) raise real interest rates, lower prices, and reduce real GDP.
B) raise real interest rates, lower prices, and leave real GDP unchanged.
C) raise nominal interest rates, lower prices, and leave real GDP unchanged.
D) lower real interest rates, raise prices, and increase real GDP.