Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the short run,everything else held constant. (Assume the appreciation causes no effects in the supply side of the economy. )
A) an increase;an increase
B) a decrease;a decrease
C) no change;an increase
D) no change;a decrease
Correct Answer:
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