Because of the aggregate demand increased and aggregate supply increased the US economy was able to achieve full employment with relative price level stability between 1996 and 2000.
From 1996 to 2000, the US stock market more than doubled in value. If the aggregate demand curve shifts to the right as the components of aggregate demand-consumption spending, investment, government spending on exports minus imports-rise, when the curve will turn back to the left all these components will fall.
