What would cause inflation to rise and employment to increase?

Question

Quizplus · Accepted Answer

When the AD curve shifts to the right, it leads to an increase in demand for goods and services, causing an increase in production and employment in the short term. As production increases, firms hire more workers to meet the rising demand, which reduces unemployment. However, the increase in demand for goods and services can also lead to inflationary pressures in the economy, causing prices to rise. Therefore, the simultaneous increase in employment and inflation represents a short-run trade-off in the economy.

What Would Cause Inflation to Rise and Employment to Increase