In 1870, the richest country in the world was

Suppose the economy is producing at the natural rate of output. An open market sale of bonds by the Fed will cause ________ in real GDP in the short run and ________ in inflation in the short run, everything else held constant

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

Suppose nominal GDP increased in a given year. Based on this information, we know with certainty that

A) real output has increased. B) the price level (GDP deflator) has increased. C) real output and the price level (GDP deflator) have both increased. D) either real output or the price level (GDP deflator) have increased. E) real output has increased and the price level has decreased.