Suppose the Economy Is Producing at the Natural Rate of Output.Assuming

Multiple Choice

Suppose the economy is producing at the natural rate of output.Assuming a fixed natural rate of output and everything else held constant,the development of a new,more productive technology will cause ________ in the unemployment rate in the short run and ________ in the aggregate price level in the short run.

A) an increase; an increase
B) a decrease; a decrease
C) a decrease; an increase
D) no change; no change