Which of the following best illustrates economic growth?

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An outward expansion of the production possibilities curve.A transition from a point inside the curve moving closer to the curve itself.A contraction or inward shift of the production possibilities curve.A movement along the production possibilities curve favoring more capital goods.

Explanation

Economic growth is represented by the production possibilities frontier shifting outward, indicating an increase in an economy's capacity to produce goods and services. Movements toward the curve from inside show better resource utilization but not growth. An inward shift signals a reduction in capacity, while movement along the curve reflects changes in the production mix, not growth.