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

Question

Quizplus · Accepted Answer

An increase in investment spending shifts the aggregate expenditure curve upward due to increased spending at all levels of income, and it also shifts the aggregate demand curve to the right, reflecting an increase in demand at all price levels.

An Increase in Investment Spending Results in a ________ the Aggregate