In a two-period model with production, a shock that shifts the output

In a two-period model with production, a shock that shifts the output demand curve to the right, and does not shift the output supply curve

A) causes an increase in the current account surplus and an increase in real output.
B) causes no change in the current account surplus and an increase in real output.
C) causes a decrease in the current account surplus and no change in real output.
D) causes a decrease in the current account surplus and an increase in real output.

ANSWER

C