AP Macroeconomics / Unit 5: Long-Run Consequences of Stabilization Policies
5.6 Economic Growth
Notes
Growth is an increase in potential output (LRAS and PPC shift out).
- Sources: physical capital, human capital, technology, natural resources.
- Productivity (output per worker) drives living standards.
Practice
Which increases long-run economic growth?
Raises productivity.
Economic growth is shown by:
More potential output.
Real GDP per capita measures:
Divide by population.
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