Macroeconomics of the 1970s largely ignored capital accumulation. Growth
theory was concerned with the long-term movements in the economic aggregates,
whereas macroeconomics was concerned with the short-term movements.
Virtually no connection was made between the then-dormant growth
theory and the dynamic equilibrium theories of business cycles. Probably the
reason was that short-term movements in output are accounted for in large
part by movements in the labor input, whereas long-term growth in living
standards is accounted for by increases in the capital service input and in total
factor productivity. All these variables are per working-age person.