If an economy is growing,but experiences no inflation,this means
A)aggregate demand increased,but aggregate supply did not.
B)aggregate supply increased,but aggregate demand did not.
C)aggregate demand and aggregate supply increased by the same amount.
D)aggregate demand and aggregate supply decreased by the same amount.

Question

Quizplus · Accepted Answer

When both aggregate demand and aggregate supply increase by the same amount, the economy can grow without causing inflation, as the increase in supply meets the increase in demand, keeping prices stable.

If an Economy Is Growing,but Experiences No Inflation,this Means