Question

1. what is the difference between and intermediate good and a final good? which is counted in gdp and why?

1. what might create technological advances to promote economic growth?

1. what is impacted at a peak and a tough in a business cycle?

1. according to the cost- push theory what is responsible for inflation?

Explanation:

Question 1

An intermediate good is used as an input in the production of other goods (e.g., steel for car production), while a final good is consumed by the end - user (e.g., a car). Final goods are counted in GDP because counting intermediate goods would lead to double - counting (as their value is already included in the final good's value).

1. Research and Development (R&D): Firms and governments investing in R&D can lead to new technologies. For example, pharmaceutical companies' R&D for new drugs.
2. Education and Human Capital: A more educated workforce can innovate. Skilled engineers can develop new manufacturing technologies.
3. Entrepreneurship: Entrepreneurs take risks to develop and commercialize new technologies, like tech startup founders creating new apps.
4. Government Policies: Subsidies for R&D, patent protection (to encourage innovation by ensuring inventors can profit), and infrastructure investment (e.g., high - speed internet for tech development) can promote technological advances.
5. International Trade and Technology Transfer: Countries can import new technologies from abroad, like developing countries adopting advanced manufacturing techniques from developed ones.

• At a Peak (of Business Cycle):
• Output (GDP): At its highest level in the cycle.
• Employment: Unemployment is low as businesses are operating at full or near - full capacity.
• Inflation: Tends to be higher as demand is high, and firms may raise prices.
• Business Profits: Usually high as sales are strong.
• At a Trough (of Business Cycle):
• Output (GDP): At its lowest level in the cycle.
• Employment: Unemployment is high as businesses cut back on production and lay off workers.
• Inflation: May be low or there could be deflation (falling prices) as demand is weak.
• Business Profits: Usually low as sales are weak.

Answer:

• Intermediate good: A good used as an input in producing other goods. Final good: A good consumed by the end - user.
• Final goods are counted in GDP to avoid double - counting (intermediate goods' value is in final goods' value).

Question 2