Which economics test hypotheses against facts to develop

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Q. The process by which economics test hypotheses against facts to develop theories, principles also models are called Illustrate what?

Q. Assume a closed economy, perfectly elastic labor supply also linear technology. Assume the
incremental capital-output ratio (ICOR) is 3, the depreciation rate is 3% also the gross savings
rate is 10%. Utilize the Harrod-Domar growth equation to conclude the rate of growth. Illustrate what would the gross savings rate have to be to achieve 5% growth?

Q. Since it is counted as investment, why doesn't the purchase of earthmoving equipment from China by a U.S. corporation increase U.S. GDP?

 

Reference no: EM1322761

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