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?
Use concepts from the modular background readings as well as any good-quality resources you can find. Be sure to cite all sources within the text and provide a reference list at the end of the paper.
Length: 4–5 pages double-spaced and typed.
The following items will be assessed in particular:
- Your ability to understand what factors affect economic growth.
- Some in-text references to the modular background material (SPA recommended).
- The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.