Long-run economic growth can be illustrated in Figure 17.1 by a

Question

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Long-run economic growth is illustrated by a shift outward of the production possibilities curve, indicating an increase in the economy's potential for production over time as a result of improvements in technology, capital accumulation, and labor force growth. Movement from point D to point B would only represent a movement along the curve, while movement from point A to point B would represent short-run economic growth. Shift inward of the curve would represent a decrease in production potential.

Long-Run Economic Growth Can Be Illustrated in Figure 17