If the government raises government expenditures,what happens to prices and unemployment in the short run?

Question

Quizplus · Accepted Answer

When the government increases its expenditures, it injects more money into the economy. This leads to an increase in aggregate demand, which can cause prices to rise due to excess demand. Additionally, the increased spending can generate more economic activity, leading to firms hiring more workers and reducing unemployment in the short run.

If the Government Raises Government Expenditures,what Happens to Prices and Unemployment