Which of the following could decrease unemployment and inflation simultaneously?

Question

Quizplus · Accepted Answer

A decrease in oil prices would decrease the cost of production for firms, which would lower prices for consumers and decrease inflation. At the same time, firms may hire more workers to increase production, which would decrease unemployment. Expansionary monetary policy may also decrease unemployment, but it could increase inflation. Contradictory monetary policy would decrease inflation, but it could also increase unemployment. An increase in the real wage would likely only decrease unemployment, but it may also increase inflation.

Which of the Following Could Decrease Unemployment and Inflation Simultaneously