downward. 7‚ the correlation of political party of the president and GDP growth is -0.277811979‚ which indicates a strong relation. The correlation of Top individual marginal tax rate and GDP growth is 0.218935712‚ which indicates a strong relation as well. 8‚ what I am surprised is that the top individual marginal tax rate does have a strong relation with GDP growth. Before I arrange the data from ascending years to descending GDP growth rate‚ I thought there is no relation between those two categories
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Automotive firms in the United States switch to a new technology that raises productivity. Technological change enables firms to produce more from any given amount of facts of production. Therefore‚ technology increases potential GDP. So‚ an increase in potential GDP increases both- long run aggregate supply and short- run aggregate supply. b)Toyota and Honda build additional plants in the United States. Toyota and Honda build more plants in the United States; it
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investment that is less than planned investment. 2. The ratio of the increase in ________ to the increase in ________ is called the multiplier. A) equilibrium nominal GDP; autonomous expenditure B) equilibrium real GDP; autonomous expenditure C) autonomous expenditure; equilibrium real GDP D) induced expenditure; equilibrium real GDP 3. An example of assets that are included in household wealth would be A) stocks‚ bonds‚ and savings accounts. B) stocks‚ loans owed‚ and savings accounts. C)
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artefacts covering measures of economic growth‚ such as gross domestic product (GDP) and gross national income (GNI). They also have pointers representing elements known to be appropriate to economic growth‚ such as capital stock‚ employment‚ investment‚ savings‚ consumption‚ government spending‚ imports‚ and exports (The World Bank‚ 2014). GDP is one of the primary pointers to evaluate the economy of a country. GDP is the market value of goods and services produced by property and labour in a
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Question 1 1. Consumption spending is $4.5 billion‚ gross private domestic investment is $3 billion‚ and government expenditures are $2 billion. If GDP is $14 billion‚ which of the following could be true regarding exports and imports in the economy? Answer Exports are $6 billion‚ and imports are $8.5 billion. Exports are $15 billion‚ and imports are $10.5 billion. Exports are $4.5 billion‚ and imports are $2 billion. Exports are $9 billion‚ and imports are $6 billion. 10
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Macroeconomics Problem Set 1 1. Explain why an economy´s income must equal its expenditure 2. List the four components of GDP. Give an example of each 3. Why do Economists use real GDP rather than nominal GDP to gauge economic well-being 4. What component of GDP (if any) would each of the following transactions affect? Explain a. A family bus a new refrigerator b. Jane buys a new house c. For sells a Thunderbird from its inventory d. You buy a pizza
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Case study “Economic Growth: Spot the Trend” In this case study we look at some data of Mangoland GDP. The various items listed have been taken from a more general table presented in the CSO publication Economics Trends. it must be emphasized that all components items are evaluated in constant price terms. Thus one of the exercises will be to calculate some “real” growth rates for the Mangoland. Other uses of such data are for interpreting past events and forecasting ones. Theses issues will
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Gross Domestic Product GDP‚ or Gross Domestic Product is the total monetary value of all finished goods and services produced in a country calculated on an annual basis. It includes total consumer‚ investment‚ and government consumption‚ the value of exports minus the value of a countries imports‚ investments and government outlays. GDP is used to measure a countries economic health as well as gauge the countries standard of living. Critics of using GDP say that it does not take into account
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particular economic phenomena and the theory involves some economic models. Macroeconomics focuses on three data series which are the real GDP‚ unemployment rate and inflation rate. Focusing on GDP the gross domestic product it has emerged as the single most renowned economic indicator for government policies and businessman. Wenzel (2009‚ p 61) defines GDP as the measure of the size of an economy as captured by the market value for all final goods and services sold within a given period of time
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Macroeconomics‚ 12e (Gordon) Chapter 2 The Measurement of Income‚ Prices‚ and Unemployment 2.1 Why We Care About Income 1) Job openings are plentiful when the A) actual real GDP is above the natural real GDP. B) natural real GDP is above the actual real GDP. C) natural real GDP is increasing rapidly. D) None of the above. Question Status: Previous Edition 2) The real income per capita is a measure of the A) well-being of every individual in the nation. B) well-being of the average individual
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