Other things the same, an increase in aggregate demand reduces unemployment and raises inflation in the short run.

Name: Other things the same, an increase in aggregate demand reduces unemployment and raises inflation in the short run.
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An increase in aggregate demand typically leads to higher employment as firms hire more workers to meet the increased demand for their products, thus reducing unemployment. At the same time, the increased demand can lead to higher prices, contributing to inflation.

Other Things the Same, an Increase in Aggregate Demand Reduces