Which of the following is true?

a. Inflation and unemployment rates can both decrease in the short run in response to negative supply shocks.
b. Inflation and unemployment rates cannot both increase or both decrease in the short run in response to changes in aggregate demand.
c. Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
d. All of the above are true.

b

Economics

You might also like to view...

If what producers intend to produce for consumption is precisely what consumers intend to consume, then the economy will be in equilibrium

Indicate whether the statement is true or false

Economics

The software industry has traits in common with monopoly markets

a. True b. False Indicate whether the statement is true or false

Economics