If the government stimulates aggregate demand in response to a permanent adverse supply shock O the inflation rate will increase but frictional unemployment will decrease. the unemployment rate will increase but the inflation rate will decline. O an increase in unemployment can be avoided but only at the cost of increased inflation. O high inflation can be avoided but the rate of unemployment will increase.Policymakers do not recommend using accommodating policies always in response to an adverse supply shock because O accommodating policies may have a smaller inflationary impact and greater unemployment impact. O accommodating policies only cause inflation, keeping output constant. O accommodating policies may have a greater inflationary impact and smaller unemployment impact. O accommodating policies may lead to a large budget surplus.Combining the concepts of the Phillips curve and the Aggregate Supply, we know that O prices decrease with the level of output, and the quantity of real GDP demanded increases. O prices increase with the level of output, and increased output means increased employment and as such increased wages. O the labor market and goods market are independent of each other. O prices increase with the level of output, and increased output means increased unemployment and as such decreased wages