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QUESTION 19 Which statement about US private domestic investment is INCORRECT? It includes the purchase of machinery by forei
Refer to the below graph. At a price level of 116 116 110 105 1,0002,000 3,100 Real GDP (billions of dollars per year) invent
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19. A. It includes the purchase of machinery by foreign businesses.
(Private domestic investment does not include purchase of machinery by foreign businesses.)

20. Shown three options are false
(This is because as supply exceeds demand so inventories would rise, firms will lower their prices, and aggregate quantity demanded will be less than the aggregate quantity supplied.)

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