Suppose the U

Multiple Choice

Suppose the U.S. economy is producing at the natural rate of output. A depreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the long run,everything else held constant. (Assume the depreciation 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