Economic growth can result either from increase in a country’s resources or from improvements in the efficiency with which these resources are used.
Growth in a country’s production capability shifts the country’s production-possibility curve outward. Thus, an economic growth means an outward shift of a country’s PPC.
2 sources of long-run economic growth:
Increases in a country’s endowments of production factors (e.g. physical capital, labor, and land) increase in production;
Improvements production technologies increase in productivity of resources (increase in efficiently used resources).