Suppose the Short-Run Aggregate Supply Curve Is Positively Sloped and the Money

Multiple Choice

Suppose the short-run aggregate supply curve is positively sloped and the money supply increases.What is the effect on aggregate demand?  

A)  Aggregate demand increases, which increases real GDP and increases the price level. 
B)  Aggregate demand increases, which decreases real GDP and decreases the price level. 
C)  Aggregate demand falls, which increases real GDP and increases the price level. 
D)  Aggregate demand falls, which decreases real GDP and increases the price level.