True or False:
1. Human welfare is greatly influenced by long-term changes in a nation’s capacity to produce goods and services.
2. Emphasis on the short run of the business cycle can ignore the longer-term dynamic changes that affect output and real incomes.
3. Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita.
4. Along the production possibilities curve, the economy is producing at its potential output, sometimes called its natural level of output.
5. Another way of saying that economic growth shifted the production possibilities curve outward is that it increased potential output.
6. Greater stocks of land, labor, or capital can shift the production possibilities curve outward.
7. The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation’s growth rate divided by 70.
8. The “richest” or “most-developed” countries today have many times the per capita output of the “poorest” or “least-developed” countries.