Economic growth is best defined as
A) rightward shifts of the SAS curve.
B) rightward shifts of the AD curve.
C) decreases in potential GDP.
D) increases in potential GDP.

Question

Quizplus · Accepted Answer

Economic growth is measured by increases in potential GDP, which refers to the maximum amount of goods and services that can be produced in an economy. This can be achieved through various factors such as technological advances, capital accumulation, and labor force growth. Therefore, the correct answer is D.

Economic Growth Is Best Defined as