Final answer:
The question on the American Jobs Creation Act of 2004's deduction formula is related to the domestic production activities deduction. However, the provided information does not directly address the formula, which was based on a percentage of qualified production activities income or taxable income. The DPAD was later repealed in 2017.
Step-by-step explanation:
The American Jobs Creation Act of 2004 introduced a new deduction to encourage domestic manufacturing, known as the domestic production activities deduction (DPAD). However, the formula for this deduction is not directly provided in the question or the given information. Rather, the information discusses the multiplier effect of government spending on the economy and touches on globalization's impact on U.S. manufacturing jobs and the economy. The formula for DPAD took into account a percentage of the qualified production activities income or taxable income, whichever was less. However, please note that the DPAD was repealed by the Tax Cuts and Jobs Act of 2017.
To examine the economy's response to changes in income taxes or government spending—as highlighted in the provided data—one could use various macroeconomic models and consider factors such as consumption, taxes, savings, and imports.