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:

Health Behaviors

Actions taken by individuals that affect their health, either positively or negatively, such as diet, exercise, smoking, and drinking.

Death Rates

The frequency of deaths in a population over a specific period of time, usually expressed per thousand or hundred thousand persons per year.

Cancer

A disease characterized by the uncontrolled division of abnormal cells in a part of the body.

General Adaptation Syndrome

A theory describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.