Short-Run Fluctuations and Long-Run Economic Growth

The modern market has demonstrated a remarkable ability to generate long-run growth. Despite this ability, the U.S. economy experiences growth rate fluctuations from year-to-year. First, discuss two reasons short- run economic fluctuations occur. Next, discuss the three key features these fluctuations have in common. Then, given that growth is measured as changes in real GDP per capita in order to eliminate the effects of changes in the price level and changes in population size, discuss the objective of long-run economic growth relative to short-run fluctuations. In doing so, list the three ways to increase productivity and discuss the direct impact on productivity resulting from one of these ways. Lastly, give one example of the short- run/long-run relationship from a recent news article.