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If Policymakers Expand Aggregate Demand, What Happens to Inflation and Unemployment

Question 141

Multiple Choice

If policymakers expand aggregate demand, what happens to inflation and unemployment in the long run?


A) Inflation will be higher and unemployment will be lower.
B) Inflation will be higher and unemployment will be unchanged.
C) Inflation and unemployment will be unchanged.
D) Both inflation and unemployment will be higher.

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