Assuming the economy is starting at the potential output and everything else held constant, the effect of in aggregate is a rise in both inflation and output in the short-run, but in the long-run the only effect is a rise in inflation. a decrease: supply a decrease; demand an increase; supply an increase; demand Suppose the economy is producing at the potential output. An open market purchase of bonds by the Fed will cause in real GDP the the short run and in inflation in the short run, everything else held constant. an increase; an increase a decrease; a decrease no change; an increase no change; a decrease Question 17 1 pts Zimbabwe is a country known for its economy experiencing hyperinflation and dollarization a liquidity trap and dollarization a fixed exchange rate regime a crawling peg