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If, when recovering from a recession, unemployment falls but inflation does not increase, the most l

If, when recovering from a recession, unemployment falls but inflation does not increase, the most likely cause of this is:
A) aggregate supply is increasing at a faster rate than aggregate demand.
B) both aggregate demand and aggregate supply are decreasing.
C) aggregate demand is increasing at a faster rate than aggregate supply.
D) aggregate demand is increasing but aggregate supply is decreasing.

Textbook

Principles of Macroeconomics

Edition: 11^th

Authors: Case, Fair, Oster

Read 132 times

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NYC Author

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8 years ago

Good answer, thanks.

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