If Policymakers Reduce Aggregate Demand, What Happens to Inflation and Unemployment

question 57

Multiple Choice

If policymakers reduce aggregate demand, what happens to inflation and unemployment?

• A) Inflation and unemployment rise.
• B) Inflation rises, but unemployment falls.
• C) Inflation falls, but unemployment rises.
• D) Inflation and unemployment fall.

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Definitions:

Intention Tremors

A type of tremor that becomes more pronounced when a person attempts to perform a voluntary movement, often associated with disorders of the cerebellum.

Extrapyramidal System

A neural network in the brain that is part of the motor system causing involuntary reflexes and movement control.

Skilled Movements

Movements that require coordination and precision, often learned through practice, involving specific brain regions such as the cerebellum and motor cortex.

Unconscious Movements

Movements that occur without conscious intent or awareness, typically reflexive or automatic in nature.