Under Rational Expectations,which of the Following Will Likely Be an Initial

Multiple Choice

Under rational expectations,which of the following will likely be an initial effect of an unanticipated shift to a more restrictive macroeconomic policy?

A) a short-run decrease in output and a long-run decrease in inflation
B) no change in output even in the short run,only a permanent decrease in inflation
C) a short-run decrease in inflation and a long-run decrease in output
D) lower inflation and lower output in the long run