Economic growth
A) occurs when the long-run aggregate supply curve shifts upward.
B) is an increase in potential GDP as the long-run aggregate supply curve shifts rightward.
C) requires a compensating decrease in aggregate demand to offset the increase in aggregate supply.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

Economic growth is represented by a rightward shift in the long-run aggregate supply curve, indicating an increase in potential GDP. This does not necessarily involve a shift upward or require a decrease in aggregate demand to offset the increase in aggregate supply.

Economic Growth