Figure 10-5
-In Figure 10-5, which graph best illustrates the situation of an economy with high unemployment that experiences an increase in investment spending?

Question

Figure 10-5 
-In Figure 10-5, which graph best illustrates the situation of an economy with high unemployment that experiences an increase in investment spending?

Quizplus · Accepted Answer

An increase in investment spending in an economy with high unemployment typically shifts the aggregate demand curve to the right, leading to higher output and employment, which is best illustrated by graph (3).

Figure 10-5 -In Figure 10-5, Which Graph Best Illustrates the Situation of the Situation