Refer to the information provided in Figure 8.9 below to answer the questions that follow. Figure 8.9
-Refer to Figure 8.9. As a result of an increase in investment by $20 million, aggregate expenditures shifts ________, ________ equilibrium output and equilibrium expenditure.
A) down; increasing
B) up; increasing
C) down; decreasing
D) down; not changing

Question

Refer to the information provided in Figure 8.9 below to answer the questions that follow.  Figure 8.9
-Refer to Figure 8.9. As a result of an increase in investment by $20 million, aggregate expenditures shifts ________, ________ equilibrium output and equilibrium expenditure.
A) down; increasing 
B) up; increasing 
C) down; decreasing 
D) down; not changing

Quizplus · Accepted Answer

An increase in investment would shift aggregate expenditures upward, leading to an increase in equilibrium output and equilibrium expenditure. This is because investment is a component of aggregate expenditures and an increase in investment would increase overall spending in the economy, leading to an increase in output and expenditure.

Refer to the Information Provided in Figure 8