Unemployment and prices rose.
How does unemployment affect price levels?
In scenarios where monetary or financial measures are taken to bring the unemployment rate below the natural rate of unemployment, the resulting increase in demand encourages companies and producers to raise prices even faster.
These workers will begin to demand higher wages. Ultimately, higher wages and rents will lead to higher producer prices, which in turn will generate higher wage demand. So, despite some unemployment, increasing the money supply may increase production slightly, but it can also lead to inflation.
Learn more about economies at
https://brainly.com/question/1106682
#SPJ2
