5 Country A produces GDP according to the following equation: GD and has a capital stock of 12,254. If the country devotes 15% of its GDP to producing or repairing investment goods, how much is this country currently investing? Rounds your answer to two decimal places.
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- Assume that a country experiences a permanent increase in its saving rate. Which of the following will occur as a result of this increase in the saving rate?Country A produces GDP according to the following equation: GDP = 5√K or can be read as (5 square root of K), and has a capital stock of 10,000. If the country devotes 25% of its GDP to making investment goods, how much is this country investing? Additionally, if 1% of all capital goods depreciate every year, is the country’s GDP increasing, decreasing or remaining constant?Why is investment an important component in a country's output? what theory supports investment in GDP
- Briefly explain whether investment spending is likely to increase more rapidly in a country with a rapidly growing population or in a country with a slowly growing population. Does your answer depend on whether the country is a high-income industrial country or a low-income developing country?How does investment as defined by economists differ from investment as defined by the general public?If a nation's real GDP is growing by 6 percent per year, its real GDP will double in approximately ________. Answer to 2 decimal places.
- If consumption equals $6,200 billion, investment equals $1,200 billion, transfer payments equal $1,500 billion, government purchases equal $2,200 billion exports equal $900 billion imports equal $1,100 billion foreign factor income equals $200 billion Then GDP is equal to: Group of answer choices $11,100 billion $9,600 billion $10,900 billion $9,400 billionExplain why a policy mix would result in growth in GDP.Out of the options below, which is the best answer for a complete analysis of economic conditions? GDP: +1.2 Consumption: +0.1% Investment: +3.0% Government Expenditures: +0.5% Net Exports = Unchanged a. Consumer spending is down but consumer investing is up. I expect the stock market to be reaching new highs b. While GDP growth is slow, the future is bright because firms are investing in new plant and equipment a. The economy is doing well at 1.2% growth. d. GDP is growing but with flat consumption, increased investment is likely due to inventory increases. This is a bad sign for the economy now and perhaps next quarter.
- In order to improve living standards for future generations, the economy must sacrifice consumer goods today reduce its investment goods increase government spending reduce growth in the populationThe government of a small island country is concerned about a few things and has hired you as an economic consultant to do some economic analysis for 2020. First, the government is worried that the inflation rate in the country is too high. This could reduce the purchasing power and the standards of living of the residents. Second, it suspects that the residents are importing too much goods and services from foreign countries. This could result in unemployment in the island. Third, and finally, it fears that the entrepreneurs are making too much profit and this could lead to unrest in the country. The government has been able to calculate the following statistics (converted to dollars), which you will use to carry out your assignment. All the data pertain to 2020. All the numbers except for real GDP are in nominal terms. The base year in this country for the calculation of real GDP is 2019. GDP Information: Nominal GDP = $106,000,000 Real GDP = $100,000,000 Expenditures: Consumption =…The government of a small island country is concerned about a few things and has hired you as an economic consultant to do some economic analysis for 2020. First, the government is worried that the inflation rate in the country is too high. This could reduce the purchasing power and the standards of living of the residents. Second, it suspects that the residents are importing too much goods and services from foreign countries. This could result in unemployment in the island. Third, and finally, it fears that the entrepreneurs are making too much profit and this could lead to unrest in the country. The government has been able to calculate the following statistics (converted to dollars), which you will use to carry out your assignment. All the data pertain to 2020. All the numbers except for real GDP are in nominal terms. The base year in this country for the calculation of real GDP is 2019.