Graphically, the full-employment, low-inflation, rapid-growth economy of the last half of the 1990s is depicted by a
A)rightward shift of the aggregate demand curve along a fixed aggregate supply curve.
B)rightward shift of the aggregate supply curve along a fixed aggregate demand curve.
C)rightward shift of the aggregate demand curve and a rightward shift of the aggregate supply curve.
D)leftward shift of the aggregate demand curve and a leftward shift of the aggregate supply curve.

Question

Quizplus · Accepted Answer

During the late 1990s, the U.S. economy experienced both increased aggregate demand and increased aggregate supply, leading to economic growth with low inflation and full employment.

Graphically, the Full-Employment, Low-Inflation, Rapid-Growth Economy of the Last Half