Economic growth will not result in inflation if ________ shifts outward to the right at the same speed as aggregate supply.
A)aggregate demand
B)aggregate supply
C)labour supply
D)the planned aggregate expenditure curve

Question

Quizplus · Accepted Answer

When aggregate demand shifts outward to the right at the same speed as aggregate supply, it means that the increase in demand is matched by an increase in supply. This balance prevents the general price level from rising, thus avoiding inflation.

Economic Growth Will Not Result in Inflation If ________ Shifts