Economic growth is one of the areas we study in relation to government macroeconomic objectives. It is important to be able to distinguish between both actual and potential economic growth; not only through definitions but also with diagrams. It it possible to show the difference first using a PPC diagram, with a movement of the point we are at showing actual growth and a shift of the curve itself demonstrating potential growth. We can also show growth using AD/AS diagrams. You should try to remember and practice this too. Below is a reminder of what we have discussed regarding economic growth.