If aggregate supply decreases, then inflation _______________ and unemployment _______________. a)increases; increases b) increases; decreases c) decreases; increases d) decreases; decreases e) decreases; stays the same

If aggregate supply decreases, then inflation _ and unemployment _. a)increases; increases b) increases; decreases c) decreases; increases d) decreases; decreases e) decreases; stays the same

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If aggregate supply decreases, then inflation _______________ and unemployment _______________.

a)increases; increases
b) increases; decreases
c) decreases; increases
d) decreases; decreases
e) decreases; stays the same

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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