Which of the following would result from an increase in planned investment?
A) an outward shift in the aggregate demand curve
B) an inward shift in the aggregate demand curve
C) an outward shift in the aggregate supply curve
D) an inward shift in the aggregate supply curve

Question

Which of the following would result from an increase in planned investment?  
A) an outward shift in the aggregate demand curve 
B) an inward shift in the aggregate demand curve 
C) an outward shift in the aggregate supply curve 
D) an inward shift in the aggregate supply curve

Quizplus · Accepted Answer

An increase in planned investment would lead to an increase in the aggregate demand, resulting in an outward shift of the aggregate demand curve. This is because when firms invest more, they increase their production and hire more workers, which in turn increases the consumption and output, contributing to an overall increase in the economy's demand.

Which of the Following Would Result from an Increase in Planned