For an economy starting at potential output,an increase in planned investment,in the short run,results in a(n)

Name: For an economy starting at potential output,an increase in planned investment,in the short run,results in a(n)
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Question

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An increase in planned investment in the short run will lead to an increase in aggregate demand and therefore result in an expansionary output gap, which is the difference between actual output and potential output in the short run.

For an Economy Starting at Potential Output,an Increase in Planned