Better short-run use of current capacity
A)Moves the economy closer to the production possibilities curve,while long-run growth shifts that curve outward.
B)Increases capacity,while long-run economic growth increases capacity utilization.
C)Shifts the aggregate supply curve outward,while long-run economic growth moves the economy up the aggregate supply curve.

Question

Quizplus · Accepted Answer

Better short-run use of current capacity implies operating at or near full capacity, which moves the economy closer to the production possibilities curve. In contrast, long-run growth increases the economy's potential output, shifting the production possibilities curve outwards.

Better Short-Run Use of Current Capacity