What sort of event could lead to a simultaneous decrease in the rates of inflation and unemployment?
A)a decrease in money supply
B)an increase in money supply
C)an adverse supply shock
D)a decrease in material prices
E)restrictive monetary policy following an adverse supply shock

Question

Quizplus · Accepted Answer

A decrease in material prices can reduce production costs, leading to lower prices for goods and services (decreasing inflation) while also potentially increasing production and employment (decreasing unemployment).

What Sort of Event Could Lead to a Simultaneous Decrease