Increased investment in infrastructure will shift
A)The Phillips curve to the right.
B)Aggregate supply to the right and aggregate demand to the left.
C)Both aggregate supply and aggregate demand to the right.

Question

Quizplus · Accepted Answer

Increased investment in infrastructure will lead to an increase in the production capacity and efficiency of the economy, which will shift both the aggregate supply and aggregate demand curves to the right. This will result in an increase in both output and price levels in the economy.

Increased Investment in Infrastructure Will Shift