Other things constant,which of the following would reduce unemployment and raise inflation?
A)businesses become more optimistic about the future of the economy
B)because of high growth abroad,net exports rise
C)the government cuts taxes
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the options (A, B, and C) would increase aggregate demand, leading to higher economic activity, which typically reduces unemployment and raises inflation.

Other Things Constant,which of the Following Would Reduce Unemployment and Raise