Under a favorable business environment and if the economic outlook of the future looked promising ________.
A)firms might spend more for any given inflation rate
B)planned investment might increase leading to a higher equilibrium level of output
C)the aggregate demand curve would likely shift to the right
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Under a favorable business environment and promising economic outlook, firms would be more willing to spend money on investment, which would increase the equilibrium level of output. This would lead to an increase in aggregate demand, shifting the curve to the right. All of these factors would contribute to a more expansionary macroeconomic environment.

Under a Favorable Business Environment and If the Economic Outlook