In the short run,an anticipated increase in the rate of inflation would
A)increase the unemployment rate.
B)decrease the unemployment rate.
C)have no effect on employment.
D)lower the natural rate of unemployment.

Question

Quizplus · Accepted Answer

In the short run, an anticipated increase in the rate of inflation would lead to an increase in aggregate demand, which would increase output and employment.

In the Short Run,an Anticipated Increase in the Rate of Inflation