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Textbook Site for:
Macroeconomics , Fifth Edition
William Boyes, Arizona State University
Michael Melvin, Arizona State University
Internet Exercises
Capacity Utilization and Investment


Examine the graphs of nonresidential fixed investment and capacity utilization rates for the past ten years. (Graphs provided by Economagic.com.)

Questions

  1. Is there any similarity between the general shape of these two curves?
  2. Why would the capacity utilization rate affect investment spending?




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