Final answer:
A rightward shift in the LRAS and SRAS curves signals an increase in the economy's potential output, often associated with higher real GDP and potential for lower inflation rates if aggregate demand is constant.
Step-by-step explanation:
When the economy moves from point A to point B as a result of the Long-Run Aggregate Supply (LRAS) and Short-Run Aggregate Supply (SRAS) curves shifting to the right, it indicates an expansion in the economy's productive capacity. This shift can occur due to factors such as gains in productivity growth, technological advancements, an increase in the available labour force, or more resources becoming available. As a result, the new economic conditions would typically feature a higher real GDP and potential disinflation or downward pressure on the price level if aggregate demand remains unchanged.
The levelling up of economic potential due to a rightward shift in the SRAS curve aligns with the idea that a nation's production possibilities frontier is fixed in the short run but can expand in the long run. And this shift in the LRAS curve represents the economy's new potential GDP, where ideally the economy would experience full employment and a more efficient utilization of resources.