What would cause inflation and employment to increase?
A) a leftward shift of the short-run aggregate supply curve
B) a leftward shift of the aggregate demand curve
C) a rightward shift of the short-run aggregate supply curve
D) a rightward shift of the aggregate demand curve

Question

Quizplus · Accepted Answer

A rightward shift of the aggregate demand curve would increase both inflation and employment. This is because the increased demand for goods and services would lead to higher prices and increased production, resulting in more employment opportunities.

What Would Cause Inflation and Employment to Increase