Economic growth can be shown by: a. a leftward shift in the production possibilities curve.

Economic growth can be shown by:

a. a leftward shift in the production possibilities curve.

b. no change in the aggregate supply curve.

c. a rightward shift in the aggregate supply curve.

d. a leftward shift in the aggregate supply curve.

Answer: c. a rightward shift in the aggregate supply curve.

Economic growth is often signified by a movement along the upward or rightward shift in the aggregate supply curve. The total output supplied curve is also known as the short-run aggregate supply curve which shows the total quantity of goods and services firms are willing and able to supply at different prices.

As mannered before for growth to occur, it implies that the actual or potential output or productive capacity of the economy has risen. This can be explained by various reasons regarding extra personnel being available in the labour force or improvements in technology, capital or productivity. Therefore, at any given price level, the firms can be able to supply larger quantities of goods and services; thus, the aggregate supply curve shifts rightwards.

Cutting down the number of goods and services that are supplied at a given price level is illustrated by a rightward movement of the aggregate supply curve, implying an outward expansion of the PP curve, meaning the economy can produce more output with the same amount of inputs.