If firms increase investment, the aggregate expenditures function will shift upward, other things being equal.

Name: If firms increase investment, the aggregate expenditures function will shift upward, other things being equal.
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Question

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When firms increase investment, it leads to an increase in overall spending in the economy, causing the aggregate expenditures function to shift upward, assuming all other factors remain constant.

If Firms Increase Investment, the Aggregate Expenditures Function Will Shift