Submit a 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers. Show work for all calculations.
- (a.) Suppose real GDP was $13.1 trillion in 2013 and $13.3 in 2014, what is the growth rate? (b.) How many years would it take for GDP (gross domestic product) to double (using your answer from part (a)?
- What are the sources of human capital? Discuss some specific examples.
- What is the law of diminishing returns? Give an example of what the law of diminishing returns implies.
- What happens when the government raises taxes and uses revenue to engage in spending?