An increase in planned real investment spending causes
A) a shift of the C + I + G + X curve but has no effect on the aggregate demand curve.
B) a movement along the C + I + G + X curve and a shift of the aggregate demand curve.
C) a shift of the C + I + G + X curve that causes the aggregate demand curve to shift.
D) a shift of the C + I + G + X curve and a movement along the aggregate demand curve.
C
You might also like to view...
Forests in the United States have, in recent decades,
a. expanded substantially in the amount of wood grown. b. been steadily declining in acreage and in wood produced. c. been cut and cleared at a faster and faster rate. d. shown no trend in growth or shrinkage.
An elastic demand indicates that
A. relatively large changes in price are required to obtain a relatively small change in quantity demanded. B. relatively small changes in price lead to relatively large changes in quantity demanded. C. relatively large changes in quantity demanded lead to relatively large changes in price. D. quantity demanded does not vary with changes in the price.