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Author Question: In economics, what is meant by investment? What will be an ideal ... (Read 11 times)

ap345

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on: Jun 29, 2018
In economics, what is meant by investment?
 
  What will be an ideal response?

Question 2

Refer to Figure 15-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising.
 
  Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from
  A) A to E. B) B to C. C) C to D. D) C to B. E) A to B.


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stillxalice

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Investment is new capital additions to a firm's capital stock.

Answer to Question 2

D


ap345

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

mcabuhat

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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