Which of the following can be said about economic growth?
I. Economic growth is the result of increases in long-run aggregate supply.
II. Economic growth is the result of increases in aggregate demand.
A) I is true and II is false
B) I is false and II is true
C) I and II are both true
D) I and II are both false

Question

Quizplus · Accepted Answer

Economic growth is primarily driven by increases in long-run aggregate supply, reflecting improvements in productivity, technology, and resources. Increases in aggregate demand can lead to short-term growth but are not the main driver of sustained economic growth.

Which of the Following Can Be Said About Economic Growth