Economic growth can be represented by a(n):
A) percentage change in real GDP.
B) rightward shift of the long-run aggregate supply curve (LRAS).
C) outward shift of a production possibilities curve.
D) all of the above.

Question

Quizplus · Accepted Answer

Economic growth can be measured by the percentage change in real GDP, which represents an increase in the production of goods and services within an economy. This increase in production can be illustrated by an outward shift of a production possibilities curve, as the economy is capable of producing more output with the same resources. Additionally, sustained economic growth results in a rightward shift of the long-run aggregate supply curve, as firms become more efficient and productive over time. Therefore, all of the above options are accurate representations of economic growth.

Economic Growth Can Be Represented by A(n)