Multiple Choice
Figure 8-6 
-Refer to Figure 8-6. Assume that the economy is initially in long-run equilibrium. What happens if investment spending increases?
A) The short-run aggregate supply curve shifts right and the price level decreases.
B) The long-run aggregate supply curve shifts right and the price level decreases.
C) The long-run aggregate supply curve and the short-run aggregate supply curve shift right and the price level decreases.
D) The aggregate demand curve shifts right and the price level increases.
Correct Answer:
Verified
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