If investment in capital equipment requires two to three years between conceptualization and start-up to production, then
A) the gap between the desired capital stock and the existing capital stocks is closed slowly.
B) a change in expected sales will not increase output.
C) V* will be smaller than expected.
D) All of the above are correct.
A
Economics
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What will be an ideal response?
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In an open economy firms sell goods and services to:
A) households, government, and foreigners. B) just households. C) just the government. D) none of the above.
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