During the years from 1964 to 1969,inflation increased in the United States
A) when the AD curve shifted to the right, even though the SRAS curve remained stable.
B) when the SRAS curve shifted to the left, even though the AD curve remained stable.
C) when the AD curve shifted to the right and the SRAS curve shifted up and to the left.
D) despite the AD and SRAS curves remaining stable.

Question

Quizplus · Accepted Answer

During 1964 to 1969, inflation in the United States was driven by both an increase in aggregate demand (AD) and a decrease in short-run aggregate supply (SRAS), which shifted the SRAS curve up and to the left. This combination led to higher price levels.

During the Years from 1964 to 1969,inflation Increased in the United