Economic growth is shown as a:

Question

Quizplus · Accepted Answer

Economic growth is represented by an increase in the potential output of an economy. This leads to a shift in the long-run aggregate supply curve (LRAS) to the right, as the economy can now produce more without causing inflation. The short-run aggregate supply curve (SRAS) may also shift due to changes in resource prices or other short-term factors, but this is not due to economic growth. Therefore, the shift to the right in the LRAS is the best choice for representing economic growth.

Economic Growth Is Shown as A