Question

How will an increase in investment from businesses and

consumers affect aggregate demand?
(A) Investment from businesses and consumers doesn't
affect aggregate demand.
(B) Aggregate demand will increase.
(C) Aggregate demand will decrease.
(D) Aggregate will spike before equalizing.

Answer 1

The text notes that rising investment shifts the aggregate demand curve to the right and at the same time shifts the long-run aggregate supply curve to the right by increasing the nation's stock of physical and human capital.

Step-by-step explanation: