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

59993 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain some benefits of a Monopoly


Why does the price elasticity of demand (PED) of a product change at different levels of production?


Examine measures the government might use to restrict the monopsony power of supermarkets.


How many real life examples do i need for application points?


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