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:

Personnel Movement

The activities related to the transfer, promotion, or turnover of employees within an organization.

Management Inventory

A collection or database of information related to an organization’s managerial resources and capabilities.

Professional or Technical Personnel

Workers with specialized knowledge, qualifications, or expertise used in their professions, such as engineers, lawyers, or IT specialists.

Linear Programming

A mathematical method used to find the best possible outcome in a given mathematical model with linear relationships.