Refer to the information provided in Figure 15.1 below to answer the questions that follow. Figure 15.1 -Refer to Figure 15.1. Suppose the economy is currently at Point B. If investors are ________ in aggregate output, investment moves the economy to I₂. A) optimistic about past growth B) pessimistic about past growth C) optimistic about future growth D) pessimistic about future growth

Question

Quizplus · Accepted Answer

If investors are optimistic about future growth, they are more likely to invest, which can shift the economy to a higher investment and output level, represented by the move to I₂. Optimism about future growth encourages investment as investors anticipate higher returns on their investments.

Refer to the Information Provided in Figure 15