Final answer:
When individuals enhance their wealth through production and exchange, they usually contribute to economic growth unless aggregate demand exceeds potential GDP, potentially causing inflation.
Step-by-step explanation:
When individuals increase their personal wealth through production and exchange, they primarily contribute to economic growth. This is because economic growth is often driven by improvements in productivity and increased transactions in the economy. Private property and market incentives encourage investments in various aspects of production such as labor, human capital, physical capital, and technology. The aggregate demand (AD) can shift to the right due to increased consumption and investment opportunities, signaling expansion in the economy. However, if aggregate demand increases beyond the potential Gross Domestic Product (GDP), it can lead to inflation.
Countries can influence economic growth and inequality through public policies designed to promote investment and reduce disparities. Despite the relationship between increased personal wealth and economic growth, it is important to consider how wealth and investments are distributed across different societal groups.