An increase in investment ________ aggregate demand,the aggregate demand curve shifts ________ and the economy is in the ________ phase of the business cycle.
A)decreases;rightward;expansion
B)increases;rightward;expansion
C)decreases;leftward;recession
D)increases;rightward;recession
E)increases;leftward;recession

Question

Quizplus · Accepted Answer

An increase in investment will increase aggregate demand, causing the aggregate demand curve to shift rightward. This will result in an expansion phase of the business cycle, as the economy experiences growth and increased employment.

An Increase in Investment ________ Aggregate Demand,the Aggregate Demand Curve