Optimal Growth Theory is an economic framework that analyzes how an economy can achieve the highest possible growth rate over time. It focuses on the allocation of resources, investment in capital, and technological progress to maximize output. The theory often uses mathematical models to determine the best paths for consumption and savings, ensuring that future generations benefit from current economic decisions. The theory is closely related to concepts like capital accumulation and intertemporal choice, which examine how individuals and societies make decisions over different time periods. By understanding these dynamics, policymakers can create strategies that promote sustainable economic growth while balancing present and future needs.