If, when recovering from an inflationary period, the inflation rate declines and the unemployment rate also declines, this could be the result of

A. aggregate supply decreasing at a faster rate than aggregate demand is increasing.
B. aggregate supply decreasing at a faster rate than aggregate demand is decreasing.
C. aggregate supply increasing at a slower rate than aggregate demand is decreasing.
D. aggregate supply increasing at a faster rate than aggregate demand is decreasing.

Answer: D

Economics

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