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• short run economic growth

  • comes from increased use of previously unemployed resources resulting in increased overall output
  • appears as a movement from any point within the PPF to a point on the PPF or closer to it
• long run economic growth

  • comes from increases in long run aggregate supply
  • shown as a rightward shift in LRAS and keynesian AS
• determinants of short run growth

  • increases in aggregate demand- most cases
  • increases in short run aggregate supply
  • measure by % change in GDP