Rising average prices and decreased unemployment most likely come from
A) a negative demand shock.
B) a negative supply shock.
C) a positive demand shock.
D) a positive supply shock.
E) higher exchange rates.

Question

Quizplus · Accepted Answer

A positive demand shock leads to increased demand for goods and services, which typically results in rising average prices (inflation) and decreased unemployment as companies hire more workers to meet the increased demand.

Rising Average Prices and Decreased Unemployment Most Likely Come from