Figure 6.1

-Refer to Figure 6.1.Holding other variables constant,a decrease in the capital stock will result in a

Question

Figure 6.1 -Refer to Figure 6.1.Holding other variables constant,a decrease in the capital stock will result in a

Quizplus · Accepted Answer

If the capital stock decreases, it means that the economy has less capital available for investment. This will result in a decrease in the quantity of goods and services that can be produced and sold. As a result, aggregate demand will shift from curve D₂ to curve D₁, indicating a decrease in the quantity of goods and services demanded at each price level.

Figure 6.1 -Refer to Figure 6.1.Holding Other Variables Constant,a Decrease in the Constant,a