What we're talking about is the price of goods, all goods, in terms of money. That has nothing to do with unemployment, except for the fact that you get fewer goods. And when you have more money and fewer goods, the amount of dollars per good goes up. It goes up because there are fewer goods and it goes up because there is more money.

People can also change the timing of when they earn and receive their income in response to government policies.

People can change the volume, the location and the composition of their income, and they can do so in response to changes in government policies.

Arthur Laffer Quotes