Work through the list without notes. If you cannot do a statement, follow its link, then come back. Guide = study guide; Practice = practice questions.
Understanding
- I can define economic growth as a long-run rise in capacity and say why it is measured with real GDP per capita. (Guide: “What economic growth means”, “Measuring growth”; Practice Q1)
- I can explain the aggregate production function and why output rises with employment, other things equal. (Guide: “The aggregate production function”, Worked example 2(c))
- I can define labour productivity as output per employed worker and name its three determinants. (Guide: “Labour productivity”; Practice Q3)
Calculation
- I can convert nominal GDP to real GDP and calculate real GDP per capita. (Guide: Worked example 1; Practice Q7(a)–(b))
- I can calculate the growth rate of real GDP per capita, and check it with the shortcut. (Guide: Worked example 1; Practice Q2, Q5(b), Q7(c))
- I can calculate labour productivity and its growth rate from output and employment data. (Guide: Worked example 2; Practice Q5(a))
Graphs and reasoning
- I can show growth as an outward PPC shift and a rightward LRAS shift and explain why they match. (Guide: Figure 2; Practice Q4, Q6)
- I can tell long-run growth apart from a recovery that moves the economy from inside its PPC to the curve. (Guide: “Growth versus recovery”; Practice Q4)
- I can use the production function to explain how more physical or human capital per worker, or better technology, raises output per worker. (Guide: Figure 1; Practice Q6(d), Q7(d))
- I can explain why productivity growth, not just more employment, is the lasting source of higher living standards. (Guide: Worked example 2(c); Practice Q5(c))
All ticked? Move on to Topic 5.7, Public Policy and Economic Growth, or return to the course roadmap.