Refer to Figure 24-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be?

A) A B) B C) C D) D

A

Economics

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Increases in ________ typically lead to decreases in ________

A) the interest rate; saving B) disposable income; consumption C) autonomous consumption; consumption D) all of the above E) none of the above

Economics

In the early 1900s, Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line. What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?

A) It became linear.
B) It shifted down.
C) It shifted up.
D) It became flatter.

Economics