Economic growth is represented in Exhibit 5 by a:
A)leftward shift in the long-run aggregate supply curve (LRAS).
B)inward shift of the production possibilities curve.
C)rightward shift in the long-run aggregate supply curve (LRAS).
D)movement along the long-run aggregate supply curve (LRAS).

Question

Quizplus · Accepted Answer

Economic growth is typically represented by a rightward shift in the long-run aggregate supply curve (LRAS), indicating an increase in the economy's potential output.

Economic Growth Is Represented in Exhibit 5 by A