Economic growth
I. is represented by an outward shift of the production possibilities curve.
II. is defined in terms of a series of events that increase the economy's ability to produce goods and services.
III. refers to a process that increases potential output.
IV. occurs when the economy operates on its production possibilities frontier.

Question

Quizplus · Accepted Answer

Economic growth is represented by an outward shift of the production possibilities curve (I), is defined by events that increase the economy's ability to produce goods and services (II), and refers to a process that increases potential output (III). Operating on the production possibilities frontier (IV) does not necessarily indicate growth, as it could simply mean efficient use of current resources.

Economic Growth I. Is Represented by an Outward Shift of the Production