Question

describe two ways in which country x could be increase the productive capacity of the economy and cause it's ppc curve to shift outwards to point E​

Answer 1

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Economic growth is an increase in national output/income (higher real GDP).

There are two main aspects of economic growth:

Aggregate demand (AD) (consumer spending, investment levels, government spending, exports-imports)

Aggregate supply (AS) (Productive capacity, the efficiency of economy, labour productivity)

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