In the late 1990s, the United States experienced very high GDP growth, record low unemployment rates, and virtually nonexistent

Question

3 years ago

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In the late 1990s, the United States experienced very high GDP growth, record low unemployment rates, and virtually nonexistent

inflation. Based on the conclusions of the AD/AS model, this combination of good economic results can be explained by a __________.
a. rightward shift of the aggregate demand.
b. leftward shift of the aggregate demand.
c. rightward shift of the short- or long-run aggregate supply.
d. leftward shift of the short- or long-run aggregate supply.

Business

1 answer:

Kipish [7] · Answer 1 · 2021-11-28T22:27:47+03:00

Answer:

d. leftward shift of the short- or long-run aggregate supply.

Explanation:

A smaller labor force would usually lead to a reflection in the leftward shift in both short run aggregate supply and potential GDP ( gross domestic product) of the economy. What this means is it would lead to a lower level of equilibrium with GDP ( gross domestic product) and a higher price level.