According to the text, the government can use aggregate demand management policies to reduce unemployment rates.A byproduct of this policy will be
A)an increase in the price level.
B)a decrease in real GDP.
C)a decrease in the price level.
D)an increase in the budget surplus.

Question

Quizplus · Accepted Answer

Aggregate demand management policies aimed at reducing unemployment typically involve increasing government spending or cutting taxes to stimulate economic activity. This increase in demand can lead to higher prices, hence an increase in the price level.

According to the Text, the Government Can Use Aggregate Demand