Suppose the U

question 40

Multiple Choice

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 the aggregate price level 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

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