In the short run,what is the impact of demand-pull inflation on unemployment and the price level?
A)It increases unemployment but not the price level.
B)It increases the price level but not unemployment.
C)It decreases unemployment and increases the price level.
D)It increases both unemployment and the price level.

Question

Quizplus · Accepted Answer

In the short run, demand-pull inflation typically decreases unemployment due to increased demand for goods and services, which leads to higher production and employment, while also increasing the price level.

In the Short Run,what Is the Impact of Demand-Pull Inflation