In 2007, investment in France increased by 7 billion euros. Which of following occurs?
i. an upward shift in the AE curve.
ii. a leftward shift in the AD curve.
iii. an increase in the price level and real GDP in the short run.
iv. an increase in the price level and no change in real GDP in the long run.
A) i, ii, iii and iv.
B) iii and iv only.
C) i, iii and iv only.
D) i and iii only.
Correct Answer:
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