In the aggregate expenditures model, technological progress will shift the investment schedule
A)downward and increase aggregate expenditures.
B)downward and decrease aggregate expenditures.
C)upward and increase aggregate expenditures.
D)upward and decrease aggregate expenditures.

Question

Quizplus · Accepted Answer

Technological progress typically leads to more investment opportunities and higher expected returns, shifting the investment schedule upward and increasing aggregate expenditures.

In the Aggregate Expenditures Model, Technological Progress Will Shift the Investment