AP Macroeconomics 5.6: Economic Growth
Measure economic growth with real GDP per capita and explain how productivity, technology, physical capital, and human capital raise living standards.
- Syllabus
- Effective Fall 2025
- Course
- AP Macroeconomics
Measure economic growth with real GDP per capita and explain how productivity, technology, physical capital, and human capital raise living standards.
The table provided shows economic data for the country of Louland. The base year is year 1, and the GDP deflator in year 2 is 115.

Did the standard of living of the average citizen in Louland increase, decrease, or remain the same from year 1 to year 2 ? Explain using numbers.
State that the standard of living of the average citizen in Louland decreased from year 1 to year 2 and explain that the real GDP per capita in year 1 was 800 and the real GDP per
capita in year 2 was 750.
1 point
A country is at full employment and produces two types of goods: consumer goods and capital goods.
Referring to your answer to part (c), will the long-run aggregate supply curve shift to the right, shift to the left, or remain the same? Explain.
1 point:
- One point is earned for stating that the long-run aggregate supply (LRAS) curve will shift to the right and for explaining that capital accumulation will increase.