New Classical Economists Say That an Unanticipated Increase in Aggregate

Multiple Choice

New classical economists say that an unanticipated increase in aggregate demand first:

A) increases the price level and real output,and then reduces short-run aggregate supply such that the economy returns to the full-employment level of output.
B) increases the price level and real output,and then increases long-run aggregate supply.
C) increases long-run aggregate supply,and then increases the price level and real output.
D) reduces short-run aggregate supply,and then reduces long-run aggregate supply.