AP®︎ Macroeconomics: Topic 5.6 Flashcards

Real GDP divided by population, used to compare average output per person.

The economy's full-employment output when all resources are fully used.

An outward PPC shift matches a rightward LRAS shift because both show higher full-employment output.

A model showing how inputs like labor and capital determine total output.

They are directly related because more workers produce more output, other things equal.

Output per employed worker.

Technology, physical capital per worker, and human capital per worker determine output per worker.

Knowledge and innovation that let workers produce more output with the same resources.

Human-made tools, equipment, and structures used to produce goods and services.

Workers' education, skills, training, and health that increase productivity.

Output per person rises as physical capital per person and human capital per person increase.

More saving finances more investment in capital, supporting long-run economic growth.

An increase in real GDP per capita over time, measured by its percent change.