Which of the Following Is True

Multiple Choice

Which of the following is true?

A) ​Inflation and unemployment rates can both increase in the short run in response to negative supply shocks.
B) ​Inflation and unemployment rates cannot both decrease in the short run in response to reduced aggregate demand.
C) ​Inflation and unemployment rates can both decrease in the short run in response to positive supply shocks.
D) ​All of the above are true.