What is the difference between short-run and long-run economic growth?

Short-run growth is simply an increase in a country's 'gross domestic product' or 'GDP', whereas long-run growth is an increase in the country's productive capacity. When thinking in terms of an AD-AS diagram, short run growth may be shown by an outward shift in aggregate demand which leads to an increase a long the "GDP" axis. Long run growth may be shown by an outward shift in AS, as this shows an increase in the country's productive capacity.

CH
Answered by Chet H. Economics tutor

18355 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Evaluate the likely microeconomic effects of government intervention in the UK housing market.


What is the best market structure?


Why are no supernormal profits made in perfect competition in the long run?


Explain the key differences between a perfectly competitive market and of that of a monopoly.


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:

© 2026 by IXL Learning