Which of the Following Increases Inflation and Reduces Unemployment in the Short

Multiple Choice

Which of the following increases inflation and reduces unemployment in the short run?

A) either an increase in government expenditures by itself or an increase in the money supply growth rate by itself
B) an increase in government expenditures,but not an increase in the money supply growth rate
C) an increase in the money supply growth rate,but not an increase in government expenditures
D) neither an increase in government expenditures nor an increase in the money supply