Economic growth is represented by a:
A) rightward shift of the rule of 72 curve.
B) movement along a production possibilities curve.
C) rightward shift in potential real GDP (LRAS).
D) leftward shift of the long-run aggregate supply curve (LRAS).

Question

Quizplus · Accepted Answer

Economic growth is the increase in potential real GDP, and a rightward shift in LRAS represents an increase in potential real GDP. Options A and D are incorrect because the rule of 72 and the long-run aggregate supply curve are not directly related to economic growth. Option B represents movement along a production possibilities curve, which is not necessarily indicative of economic growth.

Economic Growth Is Represented by A