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We know from learning about Aggregate Supply and Demand that during recessionary times the tendancies of our leaders will be to try to increase our Aggregate Demand - the thought being that the more we demand, the more businesses will produce and thus the need for more workers. As unemployment declines, we see that GDP rises and we come out of the recessionary period.
HOWEVER, sometimes our economy is inefficient (or companies are "fat") and during the expansion after a trough a company may be leaner and not have to hire back many of it's workers. Businesses have also moved much of the manual labor overseas in an attempt to cut costs, and Technology advancements can lead to job losses for those who are behind while creating jobs for those who keep up with technological advancements.
1. (200 Words minimum) Do you believe that technology will help the United States return to economic prosperity? If so, what specific types of technology would you encourage investment in if you were the President of the United States?
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HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment if the companies' rate of return is 16% per year?
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