An increase in the overall price level that is accompanied by a short-run increa

Question

An increase in the overall price level that is accompanied by a short-run increase in unemployment is most likely to be caused by:
a decrease in aggregate demand a increase in aggregate demand a decrease in aggregate supply a increase in aggregate supply An increase in the overall price level that is accompanied by a short-run increase in unemployment is most likely to be caused by:
a decrease in aggregate demand a increase in aggregate demand a decrease in aggregate supply a increase in aggregate supply a decrease in aggregate demand a increase in aggregate demand a decrease in aggregate supply a increase in aggregate supply a decrease in aggregate demand

Explanation / Answer

a decrease in aggregate supply

as less supply means less number of workers are needed to produce goods and thus unemployment increases for short time

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