By raising aggregate demand more than anticipated, policymakers
A)reduce unemployment temporarily.
B)raise unemployment temporarily.
C)reduce unemployment permanently.
D)raise unemployment permanently.

Question

Quizplus · Accepted Answer

Raising aggregate demand more than anticipated can temporarily reduce unemployment as businesses increase production to meet the higher demand, leading to more hiring. However, this effect is generally not permanent as the economy adjusts.

By Raising Aggregate Demand More Than Anticipated, Policymakers