It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate this claim
If the claim were true then the share of GDP that the U.S. imports would have to be extremely high given the share of goods versus services in the U.S. economy. If we look at the data, only about 13 percent of U.S. GDP is imported and imports from China account for about one fifth of this. That means that over 80 percent of what Americans consume is made in the United States. Therefore this claim is false.
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In the above figure, what could cause the shift of aggregate demand fromAD1 to AD2?
A) depletion of raw materials B) an increase in international trade barriers C) a decrease in consumer confidence D) an increase in input prices
How is the lemons problem in the used car market an example of asymmetric information?
What will be an ideal response?