The Rational Expectations Theory Implies That an Accurately Anticipated Change

Multiple Choice

The rational expectations theory implies that an accurately anticipated change in aggregate demand:

A) will increase real GDP in the long run.
B) will affect real GDP and inflation only in the long run.
C) will affect real GDP in the short run but not nominal GDP.
D) will affect nominal GDP in the short run but not real GDP.
E) will affect real GDP in the long run but not nominal GDP.