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Economic Growth
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A positive percentage change in real GDP (per capita) over a period of time
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Economic growth is extremely significant goal for a country to achieve
Productivity
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Refers to the effectiveness during production / The amount of actual output that each population could produce in a certain period of time
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*As productivity increases, the potential output will increase, leading to an economic growth
Production Possibilities & LRAS & Economic Growth
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A rightward shift of the point in PPC curve also indicates an economic growth
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A shift in rightward shift in PPC / LRAS indicates an increase in potential output (economic growth)
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LRAS = A point that lies on the PPC
Factors causing Economic growth
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