Steady non-inflationary growth can be achieved by which of the following?
A)when aggregate demand increases by the same relative amount as long run-aggregate supply increases
B)when the increase in long run aggregate supply equals the increase in aggregate demand at the current price level
C)when the long run aggregate supply curve shifts rightward by the same percent as the aggregate demand curve
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the options describe scenarios where the increase in aggregate demand is matched by an increase in long-run aggregate supply, which would lead to steady, non-inflationary growth. This balance ensures that the economy grows without causing inflation, as the supply of goods and services increases at the same pace as demand.

Steady Non-Inflationary Growth Can Be Achieved by Which of the Following