Principles of Macroeconomics: "5.1: Growth of Real GDP and Business Cycles"

Read this section and attempt the "Try It" exercises. This material will provide you with a general understanding of how the present financial crisis can be contextualized by studying macroeconomics, which is the analysis of aggregate values of economic variables. Keep in mind that economic growth is partly a function of the extent to which there are employments of land, labor, and capital. Issues such as worker productivity, technological state, and public policy influence economic growth. Economic growth is evident in the rise in real GDP over time, for example, when the peaks in business cycle become higher and higher and the outward movement of the production possibilities curve. Keep in mind that there are many ways to measure economic growth.