Recovery? In the second quarter, businesses increased spending on equipment and software by 21.9%, while a category

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Recovery?

In the second quarter, businesses increased spending on equipment and software by 21.9%, while a category that includes home building grew amid a rush by consumers to take advantage of tax credits for homes.

Source: The Wall Street Journal, July 31, 2010 Explain how an increase in business investment at a constant price level changes equilibrium expenditure.

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Economics

ISBN: 125380

10th Edition

Authors: Michael Parkin ,Robin Bade

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