Explain the difference between short term growth and long term growth

Short term growth is, as the name suggests, growth in the output of a country in terms of GDP over a given (short, usually a year) period of time. It is measured by the annual percentage change in GDP.

Long term growth however is when the country's productive potential is increased, the potential of the country's GDP is increased. Due to an expansion in eitherthe quality or quantity of factor inputs, the country is now able to produce more.

Both these concepts can be shown simply on an aggregate supply/aggregatedemand curve. SHort term growth would be shown by any movement along the x-axis (real GDP), and Long term growth shown by a shift to the right of the LRAS (long-run aggregate supply) curve.

DJ
Answered by David J. Economics tutor

58125 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain how interest rates could be used to stimulate a rise in inflation.


How can a depreciation in the home currency impact the trade balance?


Explain how a public good is different to a private good.


Evaluate the view that a reduction in UK unemployment is best achieved through the use of supply-side policies.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning