Classical model of price level

Question

If the central bank chooses to provide a large increase in the money supply such that aggregate demand shifts strongly from AD1 to AD2, then, according to this classical model, real GDP would:

A) not change.

B) increase from Ye to Y1.

C) increase from Y1 to Ye

D) do none of the above.

Answer 1

A) not change.

AS is vertical line in classical model - so it's equilibrium output will stay unaffected.