How is economic growth shown on a graph of a long-run aggregate supply (LRAS) curve?
A) Output moves to a higher point on the LRAS curve.
B) Output moves to a lower point on the LRAS curve.
C) The LRAS curve shifts up.
D) The LRAS curve shifts to the right.

Question

Quizplus · Accepted Answer

Economic growth is represented by a rightward shift of the long-run aggregate supply (LRAS) curve, indicating an increase in the potential output of the economy.

How Is Economic Growth Shown on a Graph of a Long-Run