1. Module Economic Growth in Macroeconomic Models KRUGMAN'S MACROECONOMICS for AP* 40 Margaret Ray and David Anderson

2. What you will learn in this Module : How long-run economic growth is represented in macroeconomic models How to model the effects of economic growth policies

3. Long-run Economic Growth and the Production Possibilities Curve K’K C’ C

4. Long-run Economic Growth and the Aggregate Demand-Aggregate Supply Model

5. Distinguishing Between Long-run Growth and Short-run Fluctuations

6. Figure 40.1 Actual and Potential Output from 1989 to 2009 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

7. Figure 40.2 Economic Growth Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

8. Figure 40.3 The Trade-off Between Investment and Consumer Goods Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers