Question

(a) how much more output does the $18 trillion u.s. economy produce when gdp increases by 1.0 percent? instructions: enter your response rounded to two decimal places.

Answer 1

The output generated when the GDP increases by 1.0 percent, given an $18 trillion status of the U.S. economy is $0.18 trillion. This figure is found by taking $18 trillion (1.8*10^10) * 1% (0.01) = $1.8 billion (1.8*10^9). Simplifying the equation it is $18 trillion*1% = $0.18 trillion.