If there is an unanticipated increase in aggregate demand, then according to new classical economics, the economy will self-correct with a(n) Multiple Choice decrease in short-run aggregate supply, so output returns to its initial level but the price level rises. decrease in short-run aggregate supply, so output increases and the price level rises. decrease in short-run aggregate supply, so output returns to its initial level and the price level falls. increase in short-run aggregate supply, so output increases and the price level rises.