As a component of aggregate demand, investment refers to the
A) purchase of raw land for later resale
B) purchase of stocks and bonds
C) purchase of new equipment and additional inventories
D) difference between people's income and spending
E) dividends paid out to shareholders
Answer: C) purchase of new equipment and additional inventories
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Consider a manufacturing operation that uses specialized machinery and labor to produce its output. In this case, the input that is not fixed in the short run is labor
Indicate whether the statement is true or false
Which of the following would be the best choice for the government of Paulina if it decides to increase its tax revenue?
a. Taxing a commodity with an elastic supply b. Taxing a commodity with an inelastic supply c. Reducing the tax on a commodity with an elastic demand d. Reducing the tax on a commodity with an inelastic demand