Figure 24-3
-Refer to Figure 24-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?

Name: Figure 24-3 -Refer to Figure 24-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?
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Question

Figure 24-3 
-Refer to Figure 24-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?

Quizplus · Accepted Answer

An increase in investment spending shifts the aggregate demand curve to the right, moving the economy from point A to point C in the long-run equilibrium.

Figure 24-3 -Refer to Figure 24-3. Suppose the Economy Is at Point