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 inflation in the short run.

hi your question is incomplete here is the complete question and options

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 inflation in the short run.

A) an increase; an increase

B) a decrease; a decrease

C) a decrease; an increase

D) no change; no change

Answer : A decrease, a decrease ( B )

Explanation:

All others factors of production been equal the development of a new, more productive technology will cause the unemployment rate to decrease in the short run because the development of the new productive technology will drive the need to employ manpower to operate and control this new technologies in the short run.

Increase in production will see supply stable and the demand and supply of goods and services will be at equilibrium eliminating room for inflation

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