The amount of gross investment in the economy depends on the
A) response of expected output to the error in estimating the past period's actual output.
B) amount of the difference between the desired capital stock and last period's capital stock that can be put in place this period.
C) fraction of the capital stock that is replaced each period.
D) All of the above are correct.
D
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In the years immediately following the Civil War (1861–1865), a "unique" pattern of social and economic life formed in the South. It included:
(a) High productivity (b) An increase in wealth among all groups (c) Social advancement among former slaves and whites (d) Racism
A consumer maximizes utility when the marginal utilities of all goods
a. having positive money prices that are equal to zero b. are equal c. are maximized d. are equal to the opportunity costs for all goods that are considered necessities e. are exactly proportional to their market prices
A recessionary gap can be defined as:
a. an economy that is operating above its full-employment capacity. b. an economy that is operating at full-employment capacity. c. the amount by which aggregate expenditures exceeds the aggregate expenditures level needed to generate equilibrium real GDP at full employment without inflation d. the amount by which aggregate expenditures falls short of the level needed to generate equilibrium real GDP at full employment without inflation. e. the easiest way out of a depression.
What entices a second firm to enter a market that was previously a single price monopoly?
What will be an ideal response?