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MacroE Chap 9.1

terms

QuestionAnswer
Business cycle Alternating periods of economic expansion and economic recession.
Long-run Economic Growth The process by which rising productivity increases the average standard of living.
Labor Productivity The quantity of goods and services that can be produced by one worker or by one hour of work.
Capital Manufactured goods that are used to produce other goods and services.
Potential The level of real GDP attained when all firms are producing at capacity.
Created by: ace100