Assuming an upward-sloping aggregate supply curve,when aggregate demand increases,unemployment
A)Decreases,and the price level decreases.
B)Increases,and the price level decreases.
C)Decreases,and the price level increases.
D)Increases,and the price level increases.

Question

Quizplus · Accepted Answer

When aggregate demand increases, it typically leads to higher output and employment, thus reducing unemployment. This increased demand also puts upward pressure on prices, leading to an increase in the price level.

Assuming an Upward-Sloping Aggregate Supply Curve,when Aggregate Demand Increases,unemployment