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The Tendency for Investment to Decrease When Aggregate Output Decreases

question 165

Multiple Choice

The tendency for investment to decrease when aggregate output decreases is the result of the ________ effect.


Definitions:

Labor Deepening Technology

Refers to investments in technology that increase the productivity of each worker.

Standard Of Living

A measure of wealth, comfort, material goods, and necessities available to a person or community.

Necessities Of Life

Basic needs required for maintaining a healthy existence, such as food, water, shelter, and clothing.

Labor Productivity

The amount of goods and services produced per hour of labor, serving as an important indicator of economic efficiency and competitiveness.

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