Suppose the economy is in equilibrium when there is a change in environmental policy that bans all pesticides and herbicides on farmland. We would expect to observe
A. a decrease in both real output and the natural rate of unemployment.
B. a decrease in real output and an increase in the price level.
C. a decrease in real output and an increase in the natural rate of unemployment.
D. a decrease in aggregate supply and an increase in aggregate demand.