Question 1

How can we measure economic growth?

Accepted Answer

The growth rate in real GDP per capita over time

Question 2

What is the relationship between aggregate employment and output?

Accepted Answer

Aggregate employment and aggregate output are directly related, as firms need to employ more workers in order to produce more output

Question 3

What does output per employed worker measure?

Accepted Answer

Output per employed worker is a measure of average labor productivity

Question 4

What determines productivity?

Accepted Answer

The level of technology, physical capital, and human capital per worker

Question 5

What does the aggregate production function measure?

Accepted Answer

How much is produced overall in an economy, given factors such as total labor in the economy

5.6 Economic Growth, AP Macroeconomics Flashcards