If planned investment spending increases, the planned aggregate spending line:

Question

Quizplus · Accepted Answer

Planned investment spending is a component of aggregate spending (which is the sum of consumption spending, investment spending, government spending, and net exports). An increase in planned investment spending means that the total planned aggregate spending at each level of real GDP increases, resulting in a shift upward of the planned aggregate spending line.

If Planned Investment Spending Increases, the Planned Aggregate Spending Line