Author Question: In economics, investment is defined as A) disposable income plus consumption. B) disposable ... (Read 97 times)

luvbio · **on:** Jun 30, 2018

In economics, investment is defined as

A) disposable income plus consumption.
B) disposable income minus consumption.
C) the spending by businesses on capital goods and inventories.
D) the spending by households on human capital and durable goods.

Question 2

Why is the long-run aggregate supply curve a vertical line?

A) At that level of real GDP, the production costs are at their lowest level.
B) At that level of real GDP, production costs have fully adjusted to price changes.
C) At that level of real GDP, the unemployment rate is 0 percent.
D) At that level of real GDP, the inflation rate is 0 percent.