Which of the following can be said about economic growth?
I. Economic growth is the result of increases in long-run aggregate supply.
II. Economic growth is the result of increases in aggregate demand.
A) II only
B) I only
C) I and II
D) neither I or II

Question

Quizplus · Accepted Answer

Economic growth is the result of increases in long-run aggregate supply, which is represented by shifts in the production possibilities frontier (PPF) to the right due to factors such as increased productivity, investment in physical and human capital, and technological advancements. Increases in aggregate demand may lead to short-term economic fluctuations, but they do not directly result in sustained economic growth.

Which of the Following Can Be Said About Economic Growth