Question

Investment (more tools) and technological improvement (better tools) each contribute to economic growth by making labor more productive. What percentage of the U.S. economy is allocated to investment in a normal year? Also, describe how fast the U.S. economy grows in real terms on a per capita basis in an average year? When analysis is warranted, more credit will be given for answers that use the diagrams presented in class. More credit will also be given for answers that include a “story” providing an intuitive explanation of the situation

Answer 1

The investment to nominal GDP ratio stands at 21 percent approximately.

The US economy is growing on average of 2.2 percent on real GDP per capita basis past three years which is much better than previous years.

This intuitive is attributed to Donald Trumps expansionary fiscal policy and US Federal reserves expansionary monetary policy which has brought higher consumption and investment and hence higher real GDP per capita.

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH ALL THE BEST IN FUTURE