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

Decrease, decrease

Explanation:

In this question, we are asked to state what will happen to unemployment rate and inflation in the short run in the event that a more productive technology is discovered.

Firstly, we must understand that producing a more productive technology will definitely cause an increase in the amount of needed labor. This automatically means there would be an decrease in unemployment rate as more people will be absolved into the labor force as a result of increase production level.

Now, a decrease in the unemployment rate is a positive indicator for the economy. The economy is expected to make gains and this will surely cause a decrease in the percentage of inflation in the short run

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.