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MMLU / Suppose that the unemployment rate falls from 6 percent to 5 percent and the…

Problem

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question

Suppose that the unemployment rate falls from 6 percent to 5 percent and the inflation rate falls from 3 percent to 2 percent. Which of the following best explains these trends?

choices

  1. An increase in aggregate demand.
  2. A decrease in both aggregate demand and aggregate supply.
  3. An increase in both aggregate demand and aggregate supply.
  4. An increase in aggregate supply.

subject

high_school_macroeconomics

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Official source

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