Assuming the Economy Is Starting at the Natural Rate of Output

Multiple Choice

Assuming the economy is starting at the natural rate of output and everything else held constant,the effect of ________ in aggregate ________ is a rise in both the price level and output in the short-run,but in the long-run the only effect is a rise in the price level.

A) a decrease; supply
B) a decrease; demand
C) an increase; supply
D) an increase; demand