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 leads to higher production to meet the demand, reducing unemployment. The increased demand also puts upward pressure on prices, leading to a higher price level.

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