Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the right.
B) Prices will rise.
C) Output will rise.
D) Unemployment will rise.
D
Economics
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When we draw an investment demand curve, we hold constant all of the following except:
A. the expected rate of return on the investment. B. business taxes. C. the interest rate. D. the present stock of capital goods.
Economics
When people invest at home, it is called ________, and when they invest abroad it is called ________.
A. I; NX B. S; I C. S; NCO D. I; NCO
Economics