5.6 Economic Growth

The economy fluctuates between periods of ________ in the short run, but economic growth can occur in the long run.

• expansion and contraction

• day and night

• fight or flight

• war and peace

Economic growth can be measured as the growth rate in ______ over time.

• real GDP per capita

• real GDP

• price levels

• CPI

Aggregate employment and aggregate output are _____ related because firms need to employ more workers in order to produce more output, holding other factors constant. This is captured by the _______.

• directly, aggregate production function

• indirectly, phillips curve

What is one way to measure average labor productivity

• output per employed worker

• the output of the best workers

• the output of the median worker

• calories in vs calories out, you can't explain that mr lowe

Productivity is determined by the level of ????

• physical capital

• technology

• human capital per worker

• breaks you take

The aggregate production function shows that output per capita is positively related to both ???

• physical capital

• human capital

• the price of oil

• how much time we spend on social media

An outward shift in the PPC is analogous to a _____ shift of the long-run aggregate supply curve.

• leftward

• rightward

• vertical

• indeterminate