An increase in investment at a given price level
A) shifts the AD curve to the right.
B) shifts the AD curve to the left.
C) causes an upward movement along the existing AD curve.
D) causes a downward movement along the existing AD curve.
E) none of the above

Question

Quizplus · Accepted Answer

An increase in investment would increase the component of aggregate demand (AD) known as investment spending. This would shift the AD curve to the right, indicating a higher level of aggregate demand at each price level.

An Increase in Investment at a Given Price Level