Final answer:
Actual economic growth in terms of aggregate supply occurs when the aggregate supply curve shifts to the right. This can happen due to factors such as productivity growth and changes in input prices.
Step-by-step explanation:
In terms of aggregate supply, actual economic growth occurs when the aggregate supply curve shifts to the right. Productivity growth is one of the factors that can lead to a rightward shift in the aggregate supply curve.
When productivity increases, businesses can produce more output with the same amount of input, leading to an increase in potential GDP. As a result, the aggregate supply curve shifts to the right, and the economy can produce more goods and services.
Another factor that can shift the aggregate supply curve is changes in input prices. If input prices decrease, businesses can produce at a lower cost and therefore increase output. This leads to a rightward shift in the aggregate supply curve and economic growth.