Economic growth

Question

Economic growth

Quizplus · Accepted Answer

Economic growth is typically measured using real GDP, which is adjusted for inflation to provide a more accurate measure of the value of goods and services produced in an economy. It does not shift the production possibilities curve inward, as economic growth implies an expansion of an economy's capacity to produce goods and services. It may involve short-run capacity constraints as resources are mobilized to expand production, but over the long run, economic growth typically leads to an increased capacity to produce.

Economic Growth