What can we conclude if depreciation (consumption of fixed capital) exceeds gross domestic investment?
A. Net investment is negative.
B. The economy is importing more than it exports.
C. The economy's production capacity is expanding.
D. Nominal GDP is rising but real GDP is declining.
Answer: A
Economics
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A) a movement down the LRAC curve. B) a movement up the LRAC curve. C) the LRAC curve to shift up. D) the LRAC curve to shift down.
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Transactions account balances are included in
A. M2 only. B. Both M1 and M2. C. M1 only. D. None of the choices are correct.
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