If a technological advance makes it possible to produce computers at a lower cost
A) the demand for computers decreases. B) the demand for computers increases.
C) the supply of computers increases. D) the supply of computers decreases.
Question 2
If firms receive an economic forecast predicting future increases in the growth of real GDP, they are likely to respond by
A) increasing their level of investment spending to increase future production capacity.
B) decreasing their level of investment spending to decrease current production capacity.
C) increasing their level of investment spending to increase current production capacity.
D) decreasing their level of investment spending to decrease future production capacity.
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