The country of Mu has continuous strong economic growth and a steady price level.This situation is most likely the result of aggregate demand growing ________ aggregate supply.
A) at the same pace as long-run
B) slower than long-run
C) slower than short-run
D) faster than long-run

Question

Quizplus · Accepted Answer

When aggregate demand grows at the same pace as long-run aggregate supply, it results in a steady price level and continuous strong economic growth. This situation is often referred to as a "balanced" economy, where changes in demand and supply occur smoothly, and there are no major shocks to the economy. It is the ideal situation for sustained economic growth and prosperity. Options B, C, and D do not align with the steady economic growth and steady price level situation described in the question.

The Country of Mu Has Continuous Strong Economic Growth and a Steady