From an initial situation of long-run equilibrium at full-employment real GDP, an increase in aggregate demand that is permanent will:()
A. Increase real GDP, but not prices in the short run, while in the long run, prices will increase, nominal GDP will increase as a result and real GDP will remain at the new (short-run) higher level.
B. Increase nominal GDP, real GDP, and prices in the short run, while in the long run, prices will increase further but real GDP will decrease to its original level.
C. Increase nominal GDP, real GDP, and prices in the short run and in the long run.