An economy is functioning at its natural rate of unemployment. In monetarist theory, what effect would an unexpected rise in the money supply have on unemployment in the short run and in the long run?
- Ashort run: no change; long run: no change
- Bshort run: no change; long run: reduction
- Cshort run: reduction; long run: no change
- Dshort run: reduction; long run: reduction