Refer to the scenario above. If both economies have identical depreciation rate, then:
A) economy A's steady state equilibrium will lie to the left and above economy B's steady state equilibrium.
B) economy A's steady state equilibrium will lie to the right and below economy B's steady state equilibrium.
C) economy A's steady state equilibrium will lie to the left and below economy B's steady state equilibrium.
D) economy A's steady state equilibrium will lie to the right and above economy B's steady state equilibrium.
D
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Suppose that business firms spend $500 million on new capital equipment this year. Of this $500 million, $300 million was spent on domestically produced capital and $200 million was spent on foreign-produced capital
All else equal, these transactions contribute ________ to GDP. A) $500 million B) $300 million C) $800 million D) $200 million E) $0
Explain the two approaches to calculating GDP