Macroeconomics (6th Edition)
Macroeconomics (6th Edition)
6th Edition
ISBN: 9780134106229
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 11, Problem 11.3.4PA
To determine

A discussion of economists’ contradictory opinion about the nature of productivity growth.

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Productivity often rises during economic expansions and falls during economic recessions. Can you think of reasons why? Briefly explain. (Hint: Remember that the level of productivity involves both levels of output and levels of labor input.)
The magazine Women of China reported that Chinese women in big cities spent 63% of their income on consumer goods last year, up from a meagre 26% in 2007. Clothing accounted for the biggest chunk of that spending, at nearly 30%, followed by digital products such as cellphones and cameras (11%) and travel (10%). Chinese consumption as a whole grew faster than the overall economy in the first half of the year and is expected to reach 42% of GDP by 2020, up from the current 36%.  Source: The Wall Street Journal, August 27, 2010    If the economy had been operating at a full employment equilibrium, (a) Describe the macroeconomic equilibrium after the rise in consumer spending.  (b) Explain and draw a graph to illustrate how the economy can adjust in the long run to restore a full-employment equilibrium.
The following abstract appeared in gultnews.com on January 14th, 2019. "The UAE is forecast to achieve an annual average real GDP growth rate of 3.89% between 2019 and 2023, supported by an increase in investment Nows and private consumption A Would the nominal rate be less, the same or more than 3.8% Explain your answer discussing the difference between nominal GDP and8 GDP is used up by FOUR ultimate users Who are they? C Discuss whether the method that you use to calculate GDP influence the final result
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