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Chapter 6: Q. 23 (page 160)

Why do you suppose that U.S. GDP is so much

higher today than 50 or 100 years ago?

Short Answer

Expert verified

The United States currently has greater technology, more workforce, and more capital than ever before.

Step by step solution

01

Importance of GDP

GDP is crucial since it gives data on an economy's size and performance. The rate of real GDP growth is commonly cited as a barometer of the country's economic overall health.

02

Explanation

The United States GDP has risen in recent years as a result of the country's highly competent and educated workforce. The United States currently has greater technology, more workforce, and more capital than ever before.

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Most popular questions from this chapter

What are typical GDP patterns for a high-income

an economy like the United States in the long run and the short run?

What are the main components of measuring GDP

with what is produced?

Last year, a small nation with abundant forests cut

down \(200 worth of trees. It then turned \)100 worth of trees into \(150 worth of lumber. It used \)100 worth of that lumber to produce $250 worth of bookshelves.

Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation's GDP? In other words, what is the value of the final goods the nation produced including trees, lumber, and bookshelves?

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Without looking at Table 6.7, return to Figure 6.10. If we define a recession as a significant decline in national

output, can you identify any post-1960 recessions in addition to the 2008-2009 recession? (This requires a judgment

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Fig. 6.10
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