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

question 141

Multiple Choice

If policymakers expand aggregate demand, what happens to inflation and unemployment in the long run?

• A) Inflation will be higher and unemployment will be lower.
• B) Inflation will be higher and unemployment will be unchanged.
• C) Inflation and unemployment will be unchanged.
• D) Both inflation and unemployment will be higher.

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