Figure 21.2 on page 712 shows that the growth of potential GDP slowed following the recession of
Question:
Figure 21.2 on page 712 shows that the growth of potential GDP slowed following the recession of 2007–2009. Use the data in the following table to discuss how movements in potential GDP can be explained by the analysis in this chapter.
Figure 21.2
Transcribed Image Text:
Investment as a Annual Growth in Labor Productivity Year Percentage of GDP 2006 19.4% 0.9% 2007 18.3 1.6 16.5 0.8 2008 3.2 2009 13.0 14.1 3.3 2010 2011 14.4 0.1 0.9 2012 15.6 2013 16.2 0.3 2014 16.7 1.0 2015 17.1 1.2 2016 16.4 0.0 Real GDP (billions of 2009 dollars) Actual Real GDP Potential GDP $17,000 16,000 15,000 14,000 Recession of 13,000 2007-2009 12,000 11,000 Recession of 2001 10,000 9,000 Recession of 1990–1991 8,000 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
After the Great Recession investment became a s...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Political candidates have proposed the policies listed below to speed economic growth in recent years. For each, explain qualitatively the impact upon the growth of potential output and upon the...
-
Answer parts a and b, below, on the basis of the following information for a hypothetical economy in year 1: money supply = $400 billion; long-term annual growth of potential GDP = 3 percent;...
-
Go to the Web site of the Federal Reserve Bank of St. Louis (FRED) (research.stlouisfed.org/fred2/). a. Find the values for the most recent quarter for the following three variables: (1) Nominal...
-
The advantages of the computerized conversion process model " What is the EOQ model? (For self-study and research) What is JIT? (Self study and research) A firm expects to sell 2000 units of its...
-
Following are the annual cost data for a tomato press. Year Cash Flow 0.................-$210,000 1.....................88,000 2.....................68,000 3.....................62,000...
-
How might a business interact with each of the four different stakeholders you identified in the previous exercise?
-
Can you create a graphic of the Fairmont payroll systems company expenses that highlight general accounting clerk, Mary Perez, has company expenses for FICA (social security), Medicare and 401K,...
-
Yang Corporation wholesales repair products to equipment manufacturers. On May 1, 2014, Yang Corporation issued $20,000,000 of 10-year, 9% bonds at a market (effective) interest rate of 7%, receiving...
-
27 Consider the following code: (5 Puan) Interface MyInterface ( } void myMethod(): abstract class MyAbstractClass I abstract void myAbstract Mothod (); class MyClass extends MyAbstractClass...
-
MNC Mining Corporation is a mining company operating an underground mine in Zambia. The company is engaged in the extraction of copper. The company made the following exports of copper in the...
-
From 2008 to 2009, the total revenue Chevron earned from all of its operations declined by more than 50 percent, while its expenditures on oil exploration remained unchanged. If the firm was...
-
Which of the following three situations is least likely to occur at the same time as the other two situations? Real GDP is less than potential GDP. The economy has been in a strong expansion for 5...
-
Briefly explain whether you agree with the following statement: A lower price in a market always increases economic efficiency in that market.
-
Use the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year...
-
The Japan Sumo Association has begun to measure the body fat ofwrestlers to try to combat the growing problem of excessive obesitywithin the sport. As of 2010, the average wrestler weighed 412pounds....
-
Activity 1. Short answer questions 1.1 Trusts a. In 1-2 sentences, explain the tax reporting obligations of trusts. A trust has to have its own Tax file number (TFN) and ABN. A trust must determine...
-
Please share an example of the product strategy of a business of your choice - you can use a company that you have worked for - or your own business - a small business - a global business - it can be...
-
Please take your time to carefully answer the below questions: 1. You are to choose 3 a business or a brand and you are required to only talk about a specific product that the company produces. 2....
-
Howard said he wouldn't have to pay taxes on the money he inherited from his deceased father because it was under the $5.34 million threshold. He promptly withdrew the $900,000 that was in his...
-
Write each fraction as a percent. 7 50
-
The profitable Palmer Golf Cart Corp. is considering investing $300,000 in special tools for some of the plastic golf cart components. Executives of the company believe the present golf cart model...
-
Uncle Elmo is contemplating a $10,000 investment in a methane gas generator. He estimates his gross income would be $2000 the first year and increase by $200 each year over the next 10years. His...
-
Granny's Butter and Egg Business is such that she pays an effective tax rate of 40%. Granny is considering the purchase of a new Throb Churn for $25,000. This churn is a special handling device for...
-
Balance at beginning of the year: $ 52 comma 000 bullet Purchased goodwill during the year for $ 18 comma 500. bullet Sold various intangible properties included in class 14.1 for $ 13 comma 000...
-
Doobey, Incorporated, has just formed a new division, and the following four investment opportunities are available to the division. The firm requires a minimum return of 8 percent. Investment...
-
If I want to buy a $500,000 and can get a 30-year mortgage with an APR = 3.5%, what would my monthly payments be? If I can get a 15 year mortgage for 2.5%, how much would I save? I've checked with my...
Study smarter with the SolutionInn App