Pedro is a Keynesian economist and argues that in a downturn, state intervention is the key for economic recovery.
Keynesians believe that GDP (Gross Domestic Product) is positively influenced by aggregate demand. Hence, in order to boost GDP growth after a downturn, the state should step in the economy by increasing public expenditure. This will help to create job positions, increase the disposable income of households and therefore increase overall demand for goods and services.
If more goods and services are demanded, the same cycle restarts as firms would hire more staff in order to increase production to a greater extent to meet the new necesities. The more people who is employed, the more income avilable to continue increasing private expenditure and investments, which in turn GDP and bring economic growth.
<em><u>To make it clearer, the following is the GDP formula for a certain time period</u></em>
<em>GDP = Private Consumption + Private investment + Public expenditure + Exports - Imports </em>
Answer: t=-5.651
Explanation:
Let 
be the population mean number of hours a week answering their email.
As per given we have
Sample size : n= 783
Sample mean : 
Sample standard deviation: s=7.23
Since population standard deviation is unknown, so our test -statistic has a t-distribution.
Test statistic : 
∴ The test statistic : t=-5.651
The growing transportation system helped promote economic growth by creating jobs, increasing trade, and jump-starting industrial advancements.
