The recovery phase of the inflation-unemployment cycle is explained by

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The recovery phase of the inflation-unemployment cycle is characterized by an increase in output and a decrease in unemployment. This is achieved through expansionary policies such as an increase in government spending, tax cuts, or a decrease in interest rates which lead to a rightward shift of the aggregate demand curve. This shift increases both price level and output level in the short run, eventually leading to a rightward shift of the short-run aggregate supply curve as producers increase production to meet the higher demand.

The Recovery Phase of the Inflation-Unemployment Cycle Is Explained by