Economic Growth Practice Test

Based on the information shown in the table, which statement best identifies the secondary reinforcing factor that supports the long-run growth trend?

The country’s primary growth driver is technological progress in manufacturing. In addition, the government expanded access to community colleges and apprenticeship programs.

Table 3. Real GDP per capita (2015 dollars)

• 1970: $20,500
• 1980: $24,000
• 1990: $28,500
• 2000: $33,000
• 2010: $37,500
• 2020: $43,000

Based on the information shown in the table, which statement best explains why the country experienced long-run economic growth rather than a short-run business-cycle expansion?

Assume the economy experienced recessions in 1991, 2001, and 2009, but the long-run trend in output per person continued.

Table 1. Real GDP per capita (2017 dollars)

• 1990: $32,000
• 2000: $38,000
• 2010: $44,000
• 2020: $52,000