Section 4
Long-Run Growth
By Boundless
![Thumbnail](../../../../../../figures.boundless-cdn.com/20591/square/-weltbipworldgroupoecdengl.jpg)
Long-run growth is defined as the sustained rise in the quantity of goods and services that an economy produces.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20593/square/ge-2c-and-marginal-product.gif)
The aggregate production function examines how the productivity depends on the quantities of physical capital per worker and human capital per worker.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20632/square/tems-department-laboratory.jpeg)
In economics and long-run growth, worker productivity is influenced directly by fixed capital, human capital, physical capital, and technology.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20601/raw/ppf-expansion.jpg)
In economics, technological change is a term used to describe the change in a set of feasible production possibilities.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20595/square/0px-gdp-accumulated-change.jpg)
Government activity and policies have a direct impact on long-run growth. It can invest, and operate through monetary and fiscal policy.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20630/square/0px-gdp-accumulated-change.jpg)
Economic growth has the potential to make all people richer, but may have downsides such as increased inequality and environmental impacts.