Slow growth in aggregate demand leads to ________ inflation and ________ unemployment.
A)lower; lower
B)lower; higher
C)higher; lower
D)higher; higher

Question

Quizplus · Accepted Answer

Slow growth in aggregate demand implies less demand for goods and services, leading to lower prices and lower inflation. At the same time, businesses will reduce production in response to lower demand and may be forced to lay off workers or not hire new ones, leading to higher unemployment.

Slow Growth in Aggregate Demand Leads to ________ Inflation and ________

Slow Growth in Aggregate Demand Leads to Inflation and