Solved

Suppose Firms Increase Investment Spending to Replace Worn-Out Equipment

Question 63

Multiple Choice

Suppose firms increase investment spending to replace worn-out equipment. In the short run,aggregate demand will ________ and output will ________.

A) increase; increase
B) increase; decrease
C) decrease; decrease
D) remain unchanged; remain unchanged
E) decrease; increase

Related Questions

Q28: If consumers decide to save a larger

Q31: Shifts in the aggregate demand curve are

Q32: Aggregate supply describes a relationship between<br>A) spending

Q35: The economy is in long-run equilibrium when<br>A)

Q58: Business-cycle theory focuses on time horizons of

Q64: Refer to the following figure to answer

Q72: Refer to the following figure to answer

Q74: A new government program reduces the cost

Q125: An economy has experienced a rightward shift

Q140: Which of the following would shift aggregate