How Will the Age of the Existing Capital Stock Affect

question 83

Multiple Choice

How will the age of the existing capital stock affect aggregate demand?

• A)An older capital stock will decrease the level of investment and decrease aggregate demand.
• B)An older capital stock will decrease the level of investment and increase aggregate demand.
• C)An older capital stock will increase the level of investment and increase aggregate demand.
• D)An older capital stock will increase the level of investment and decrease aggregate demand.
• E)The age of the capital stock will not affect the level of investment or aggregate demand.

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Definitions:

Right-to-Work Laws

Legislation that prohibits union security agreements, ensuring that employment is not conditional upon union membership or fees.

Taft-Hartley Act

A 1947 federal law that restricts the activities and power of labor unions in the United States.

National Labor Relations Act

A foundational American law enacted in 1935 that protects workers' rights to organize and bargain collectively with their employers.

Union Membership

The status of being a member of a labor union, an organization that advocates for the rights and interests of workers.