Fill in the blank using the number that corresponds to the correct word or phrase: 1. 2 percent 2. fall 3. production possibilities curve 4. real GDP per person 5. greater 6. right 7. rise 8. An...

Extracted text: Fill in the blank using the number that corresponds to the correct word or phrase: 1. 2 percent 2. fall 3. production possibilities curve 4. real GDP per person 5. greater 6. right 7. rise 8. An economy's output per capita equals We use as a gauge of an economy's material standard of living If, for example, population increases by 2%, then real GDP would have to rise by to maintain the current level of output per capita. If real GDP rises by less than 2%, output per capita will . If real GDP rises by more than 2%, output per capita will For economic growth to translate into a higher standard of living on average, economic growth must be than population growth Economic growth can be defined as the process through which an economy achieves an outward shift in its To produce its potential level of output, an economy must operate on its In the framework of the macroeconomic model of aggregate demand and aggregate supply, we show in the long-run aggregate supply curve. economic growth as a shift to the