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ezto.mheducat Chapter 24 Homework ades for Jafari: ECON 102- Connect ECONOMICS C

ID: 1136080 • Letter: E

Question

ezto.mheducat Chapter 24 Homework ades for Jafari: ECON 102- Connect ECONOMICS Chapter 24 Homework Question 7 (of 15) 0.33 points What are two ways in which long-term economic growth is measured? Increases in the NAIRU and NBER. Increases in total output and per capita total output. hreases in business cycle expansions and contractions. O Increases in the target and natural unemployment rates References eBook & Resources Worksheet Section: Growth Learning Objective: 24-02 Define growth and discuss its recent history. 532

Explanation / Answer

The long-term economic growth is measured by increases in total output and per capita output.

While NAIRU is an indicator of long-term growth and stands for non-accelerating inflation rate of unemployment, there is no indicator called NBER. In fact, NBER is a non-profit economic research organization named National Bureau of Economic Research.

Business cycles are regular periodic phenomenon that do not indicate economic growth as they signify upward and downward movement of total output around the long-term growth trend of total output.

Targeting of a particular unemployment rate can also be done in short and medium term, while the natural rate of unemployment is fixed and doesn’t changes.