according to the new classical macroeconomists, how does an increase in the price level affect the level of output? group of answer choices it increases output because firms initially mistake an increase in the overall price level with a decrease in demand for their goods. it increases output because firms initially mistake an increase in the overall price level with an increase in demand for their goods. it reduces output because firms initially mistake an increase in the overall price level with an increase in demand for their goods. it reduces output because firms initially mistake an increase in the overall price level with a decrease in demand for their goods.