Between the second quarter of 2006 and the second quarter of 2009, real gross private domestic investmentfell
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Between the second quarter of 2006 and the second quarter of 2009, real gross private domestic investment fell in all quarters except the second quarter of 2007 at an average annual rate of 11.5 percent. During that time period, depreciation exceeded real gross private domestic investment (GPDI).
What effect did depreciation exceeding GPDI have on U.S. long-run aggregate supply curve?
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Because capital was not being replaced ...View the full answer
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