1. (a) Suppose the real GDP was $13.1 trillion in 2013 and $13.1 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 (a.)?
2. What are the sources of human capital? Discuss some specific examples.
3. What is the law of diminishing returns? Give an example of what law of diminishing returns implies.
4. What happens when the government raises taxes and uses revenue to engage in spending?