Question

Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand?It weakened both aggregate demand and the growth of the economy.It occurred without weakening either aggregate demand or the growth of the economy.It occurred without weakening aggregate demand, but did slow down the growth of the economy.It weakened aggregate demand, but did not slow down the growth of the economy.

Answer 1

Option B (It occurred without weakening either aggregate demand or the growth of the economy) is the appropriate choice.

Step-by-step explanation:

• There was a low unemployment rate, increased efficiency as well as higher demand in the US economy throughout 1998 and 2008. In those years, the ICT industry was at its height as well as the GDP growth of the Us economy would have been at its height, beginning between 1998-2001 and lasting until the 2008 subprime mortgage crisis.
• U.S. aggregate demand has also improved leading to increased job rates including GDP growth of about 4 percent every year and a rise and the per capita income.

Some other options offered are not relevant to something like the situation described. So, the option here is just the best one.