Suppose That a Labor Market Were Initially in Equilibrium and Wages

Suppose that a labor market were initially in equilibrium and wages and prices were perfectly flexible. If nominal wages and prices were to increase by 10 percent in response to a change in the money supply, then

A) equilibrium employment would immediately fall in response to the new, lower real wage rate.
B) equilibrium employment would immediately increase in response to the new, higher nominal wage.
C) equilibrium employment would remain at the original level despite uncertain short-term variability in the real wage.
D) equilibrium employment would immediately fall in response to the price effect despite a constant real wage.
E) equilibrium would remain at the original level because no change in the real wage would occur.