rotating in "3D"

Is it possible to rotate an object along the Y axis as opposed to just rotating in a 2D circle? I know it is possible to simulate 3D rotation, but that takes some tricky maneuvering in some cases. I was wondering if it isn't just a case of holding down a combination of Cntrl & Alt or Shift and dragging a selection point.

I have seen a video where a graphic is created - video is in high speed to show the various steps involved in creating the artwork and there is a section where it looks like the artist/designer rotates a rectangle so that the top left corner appears to be moving "out" of the screen and the right corner towards the "back" of the screen. It doesn't appear to be just a skewing of the object, but in fact it looks like it's in 3D.

Is this at all possible or am I just suffering from a case of wishful thinking... :)

 

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