Between 1996 and 2000, the U.S. economy achieved high GDP levels without inflation. Which factor below explains this?

Question

Between 1996 and 2000, the U.S. economy achieved high GDP levels without inflation. Which factor below explains this?
Multiple choice question.

Increased resource prices

Decreased aggregate demand

High unemployment

Increased productivity

GPT-4o mini · Answer

The factor that best explains the achievement of high GDP levels without inflation between 1996 and 2000 is Increased productivity.

Increased productivity allows for greater output without a corresponding increase in costs, which can help keep inflation in check even as the economy grows.