Question

Economic growth can be illustrated in the AD/AS framework through __________.

A. a shift of the short-run aggregate supply curve to the right
B. a shift of aggregate demand curve to the left
C. a shift of long-run aggregate supply curve to the right
D. a shift of short-run aggregate supply curve to the left

Answer 1

C. a shift of long-run aggregate supply curve to the right

Step-by-step explanation:

In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply. In the short run, GDP falls and rises in every economy, as the economy falls into or expands out of recession