Name the four factors of production that determine the quantity ...

[luvbio]

Name the four factors of production that determine the quantity of real GDP supplied. Which one fluctuates the most over the course of the business cycle?
 
  What will be an ideal response?

Question 2

Looking at the U.S. balance of payments for the last two decades, how have the current account and the capital and financial account changed?
 
  What will be an ideal response?

[phuda]

Answer to Question 1

The factors are the quantity of labor employed, the quantities of capital and human capital and the technologies they employ, the quantities of land and natural resources, and the amount of entrepreneurial talent available. Over the course of a business cycle, the quantity of labor employed fluctuates the most.

Answer to Question 2

Since the early 1980s, the U.S. current account has been negative and sometimes quite large. The U.S. capital and financial account has more or less mirrored the current account, only it has been positive rather than negative. Thus when the current account deficit is small, the capital and financial account surplus is small and when the current account deficit is large, the capital and financial account surplus is large.