If the depreciation rate increases from 5% to 10%, it will ___ in the long run. decrease the level of output increase the growth rate of output decrease the growth rate of output not change the level of output

If the depreciation rate increases from 5% to 10%, it will ___ in the long run. decrease the level of output increase the growth rate of output decrease the growth rate of output not change the level of output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the depreciation rate increases from 5% to 10%, it will ___ in the long run.

decrease the level of output

increase the growth rate of output

decrease the growth rate of output

not change the level of output

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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