Long-term economic growth requires a permanent
A) decline in the average price level.
B) leftward shift of the vertical Phillips curve.
C) rise in the natural rate of unemployment.
D) rightward shift of the aggregate demand curve.
E) rightward shift of the vertical aggregate supply curve.

Question

Quizplus · Accepted Answer

Long-term economic growth is achieved through an increase in the productive capacity of the economy, which is represented by a rightward shift of the vertical aggregate supply curve. This indicates that the economy can produce more goods and services over time.

Long-Term Economic Growth Requires a Permanent