Which of the following shifts,ceteris paribus,will cause lower rates of both unemployment and inflation?

Question

Quizplus · Accepted Answer

An increase in aggregate supply will shift the aggregate supply curve to the right, causing an increase in output and a decrease in prices. The decrease in prices will lead to lower inflation rates, and the increase in output will create more job opportunities, leading to lower unemployment rates.

Which of the Following Shifts,ceteris Paribus,will Cause Lower Rates of Both