An increase in aggregate demand will always lead to a decrease in unemployment and an increase in inflation, regardless of other economic factors.

When aggregate demand increases, it means that people and businesses want to buy more goods and services. This higher demand encourages companies to produce more, which often requires hiring additional workers. As a result, unemployment tends to decrease because more people are needed to meet the demand. However, as companies produce more to keep up with this demand, they may raise their prices, leading to inflation. For example, if a restaurant sees more customers and hires more staff, it might also increase menu prices to balance the higher costs, demonstrating how increased demand can lower unemployment while raising prices.