Economic growth implies a
A)Rightward shift of the aggregate demand curve.
B)Rightward shift of the short-run aggregate supply curve.
C)Leftward shift of the long-run aggregate supply curve.
D)Rightward shift of the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

Economic growth implies an increase in productivity and potential output, leading to a rightward shift of the long-run aggregate supply curve. This means that the economy can produce more goods and services in the long run without causing inflation, which ultimately increases the overall standard of living.

Economic Growth Implies a