An Increase in Aggregate Demand Temporarily Reduces Unemployment, but After

question 11

True/False

An increase in aggregate demand temporarily reduces unemployment, but after people raise their expectations of inflation, unemployment returns to the natural rate.

---

Definitions:

Virtuous Activity

Activities that are conducted in accordance with moral and ethical virtues, promoting character and moral goodness.

Excellence

The quality of being outstanding or extremely good in some respect, often achieved through hard work and dedication.

Virtuous Activity

Engaging in actions that are in accordance with moral and ethical principles, often leading to personal and communal well-being.

Flourishing

pertains to achieving an optimal state of well-being, involving the realization of an individual's potential and the attainment of meaningful goals.