Economic growth
A) is an increase in potential GDP as the long- run aggregate supply curve shifts rightward.
B) occurs when the long- run aggregate supply curve shifts upward.
C) requires a compensating decrease in aggregate demand to offset the increase in aggregate supply.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

Economic growth is an increase in potential GDP, which is represented by the rightward shift of the long-run aggregate supply curve. This shift indicates that an economy is capable of producing more goods and services in the long run, leading to economic growth. The other choices are incorrect as they do not accurately define economic growth.

Economic Growth