An economy experiences a significant increase in labor productivity alongside a rise in the household savings ratio.
All other things being equal, which combination, A, B, C or D, is most likely to result from these changes?
| The rate of inflation | Cyclical unemployment | |
|---|---|---|
| A | Decreases | Decreases |
| B | Decreases | Increases |
| C | Increases | Decreases |
| D | Increases | Increases |
Combination A\text{Combination A}Combination A
Combination B\text{Combination B}Combination B
Combination C\text{Combination C}Combination C
Combination D\text{Combination D}Combination D
