All other factors held constant,increased growth in aggregate demand will

Question

Quizplus · Accepted Answer

Increased growth in aggregate demand will lead to higher prices and higher production levels, resulting in inflation. At the same time, higher production levels will require more labor, leading to a decrease in unemployment. This shift in the economy will move it to a higher point on the short-run Phillips curve. Therefore, all three statements in the answer choices are correct.

All Other Factors Held Constant,increased Growth in Aggregate Demand Will