Graphic text is shrunk and increased in size according to the size of the textbox in which it resides. When the textbox is re-sized, the text contained within it is re-sized accordingly. Graphic Text is denoted by a green textbox.
In the example below, both textboxes are the same size, but the Graphic Text size is increased according to the size of the textbox, while the regular text size is not.
To add graphic text, right click on the textbox icon in the canvas menu, and select the graphic text icon.
To convert a regular textboxes to graphic text, select the textbox, go to the Component ribbon, and select Graphic Text. Open the Graphic Text drop down menu to change the size of the textbox, or use the cursor resize it.