A decrease in investment leads to_{--------------------}in aggregate demand and _{--------------------} in real GDP. A)a decrease; an increase B)a decrease; a decrease C)an increase; a decrease D)an increase; an increase E)no change; a decrease

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Quizplus · Accepted Answer

A decrease in investment reduces aggregate demand because investment is a component of aggregate demand. This reduction in aggregate demand typically leads to a decrease in real GDP, as there is less spending in the economy.

A Decrease in Investment Leads To--------------------in Aggregate Demand and

A Decrease in Investment Leads To_{--------------------}in Aggregate Demand and