An increase in investment spending results in a ________ the aggregate expenditure curve and ________ the aggregate demand curve.
A)shift in; has no effect on
B)shift in; a movement along
C)shift in; a shift in
D)movement along; a shift in

Question

Quizplus · Accepted Answer

An increase in investment spending shifts both the aggregate expenditure curve and the aggregate demand curve to the right, indicating an increase in overall economic activity and demand.

An Increase in Investment Spending Results in a ________ the Aggregate