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

Question

Quizplus · Accepted Answer

Economic growth is best defined as increases in potential GDP, which reflects the economy's ability to produce goods and services over time. This is typically represented by a rightward shift in the long-run aggregate supply curve, not just short-term adjustments or shifts in demand.

Economic Growth Is Best Defined as