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Actual growth
An increase in an economy's real output (real GDP) that uses up spare capacity, shown as a movement from a point inside the PPC toward the curve.
Economic growth
An increase in a country's real output (real GDP) over a period time.
Long-run growth
An increase in an economy's productive capacity (potential output), shown as an outward shift of the PPC.
Opportunity cost
The value of the next best option that must be forgone or sacrificed in order to acquire something else.
Production possibilities curve (PPC)
Curve that illustrates all possible combinations of two goods that an economy can produce at maximum output when using all available resources and current technology efficiently.