If inflation and unemployment is rising at the same time,then this is most likely the result of a shift
A)downward in the aggregate demand schedule.
B)upward in the aggregate demand schedule.
C)downward in the aggregate supply schedule.
D)upward in the aggregate supply schedule.
E)none of the above can explain this

Question

Quizplus · Accepted Answer

When both inflation and unemployment are rising simultaneously, it is indicative of a situation known as stagflation. This phenomenon is most commonly associated with a leftward or downward shift in the aggregate supply schedule. This shift represents a decrease in the total supply of goods and services at every price level, leading to higher prices (inflation) and lower output, which can increase unemployment.

If Inflation and Unemployment Is Rising at the Same Time,then