Economic growth can be depicted as
A) a shift of the LRAS curve to the left.
B) an inward shift of the production possibilities curve.
C) a shift of the LRAS curve to the right.
D) a movement along the production possibilities curve.

Question

Quizplus · Accepted Answer

Economic growth is represented by an increase in a country's capacity to produce goods and services, which is caused by factors such as technological advancement, improved infrastructure, and increased investment. This results in an outward shift in the long-run aggregate supply curve (LRAS), indicating that the country can produce more output at the same price levels. Thus, option C, which describes a shift of the LRAS curve to the right, is the correct choice.

Economic Growth Can Be Depicted as