In the aggregate demand-aggregate supply model, economic growth can be illustrated by an
A)outward shift of the aggregate demand curve.
B)inward shift of the aggregate demand curve.
C)inward shift of the aggregate supply curve.
D)All of the above.

Question

Quizplus · Accepted Answer

Economic growth leads to an increase in aggregate demand as consumers and businesses spend more, causing an outward shift of the aggregate demand curve. An inward shift of the aggregate demand curve would represent a decrease in overall economic activity. An inward shift of the aggregate supply curve would imply a decrease in the available goods and services in the economy, which is not a typical consequence of economic growth.

In the Aggregate Demand-Aggregate Supply Model, Economic Growth Can Be