Economic growth

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Question 1
Easy

Which pair of diagrams below illustrates short-run economic growth (an increase in actual output)?

Four pairs of macroeconomic diagrams, labelled A, B, C, and D. Each pair contains a Production Possibility Frontier (PPF) graph and an Aggregate Demand/Aggregate Supply (AD-AS) graph.

PPF showing movement from a point inside the boundary to a point closer to the boundary, and AD-AS showing AD shifting right

PPF showing outward shift and AD-AS showing AD shifting right

PPF showing movement from a point inside the boundary to a point closer to the boundary, and AD-AS showing LRAS shifting left

PPF showing outward shift and AD-AS showing LRAS shifting right

Economic growth Questions

  1. A Level
  2. /Economics
  3. /Economic growth