1.2 points Saved Assume that at time t=0, both E and Y are at their long-run equilibrium levels. Next, assume that the domestic government permanently increases government purchases at t=2. Finally, assume that the increase in G is anticipated at t=1. Assuming prices are fixed in the short-run, choose the correct option according to the DD-AA model: O A. There is no change in E and Y at t=1. At t=2, E decreases but Y remains at full employment level yf O B. Both E and Y decrease at t=1. At t=2, Y increases to output full employment level Y but there is no change in E O C. Both E and Y decrease at t=1. At t=2, both E and Y decrease further D. There is no change in E and Y at t=1. At t=2, E decreases but Y is greater than the output at full employment level Yf O E. Both E and Y decrease at t=1. At t=2, E decreases further while Y increases to output at full employment level Yf