Economic growth is represented by a:
A) leftward shift of a production possibilities curve.
B) rightward shift of the long-run aggregate supply curve (LRAS).
C) horizontal long-run aggregate supply curve (LRAS).
D) downward shift of an aggregate production function.

Question

Quizplus · Accepted Answer

Economic growth is represented by an increase in productive capacity and potential output, which is reflected by a rightward shift in the long-run aggregate supply curve (LRAS). This indicates that the economy is able to produce more goods and services without causing inflation, which is a key characteristic of economic growth.

Economic Growth Is Represented by A