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15 Aug 2019

The US economy is currently operating below Potential GDP.Without using someone else's estimate of Potential GDP, how would you approach calculating how much current activity is below Potential GDP? Where would you get the data for your calculation? Show us a number and how you got it.

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18 Aug 2019

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What is economic freedom and why is it important for economic growth? Go online and find an estimate of the current US GDP growth rate. A simple Google search such as 'US GDP First Quarter 2016' or 'US gdp growth' will get you started. How does the US growth rate compare to the growth rate in other countries? What besides economic freedom explains these differences?"

Explain whether the statements below is True or False.

A6-2. If an aggregate production function exhibits diminishing marginal product and constant returns to scale then a doubling of the labour force leads to a doubling of aggregate output.

A6-3. Neoclassical growth theory tells us that the widespread adoption of new technologies will increase potential GDP and potential GDP per worker.

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Thank you so much.

Please help!!! I bombed a test and my teacher is allowing us to get bonus points back if we complete this homework correctly! I am struggling in this class and really dont know how to do these problems.

Consumption. C=$25+.65Y⁰

Investment. I =1.6

Gov Purchases G=2.2

Net= -.3

Taxes T=1.9

Transfer Payments =2.5

a. calculate the equilibrium gdp

b. suppose the gdp is 20 billion. How much do you increase/decrease government purchases to make real gdp=20 billion? What is the eventual goverment purchases?

c. (following part b) How much would a government purchase multiplier effect be represented in an AD-AS model? How would it be represented in IS-LM Model?

d. Suppose potential GDP=18 billion. Increase/decrease taxes by how much? what is the new tax level?

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The US economy is currently operating below Potential GDP.Without using someone else's estimate of Potential GDP, how would you approach calculating how much current activity is below Potential GDP? Where would you get the data for your calculation? Show us a number and how you got it.

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Principles of Economics

Principles of Macroeconomics

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