An increase in planned investment would shift the
A)aggregate demand curve outward
B)aggregate demand curve inward
C)aggregate supply curve outward
D)aggregate supply curve inward
E)consumption function upward

Question

Quizplus · Accepted Answer

An increase in planned investment would lead to an increase in overall spending in the economy, which would shift the aggregate demand curve outwards. This is because planned investment is a component of aggregate demand, therefore an increase in it would result in an increase in aggregate demand.

An Increase in Planned Investment Would Shift the