In the short run, an increase in investment, ceteris paribus, shifts the
A) AD curve to the right, causing equilibrium price level to rise and equilibrium Real GDP to increase.
B) AD curve to the left, causing equilibrium price level to fall and equilibrium Real GDP to decrease.
C) SRAS curve to the right, causing equilibrium price level to fall and equilibrium Real GDP to increase.
D) SRAS curve to the left, causing equilibrium price level to rise and equilibrium Real GDP to decrease.
A
You might also like to view...
The supply of money is determined by the Federal Reserve and is dependent on the demand for money
Indicate whether the statement is true or false
Which of the following areas of study typifies macroeconomics as opposed to microeconomics?
a. the effects of rent control on the availability of housing in New York City b. the economic impact of tornadoes on cities and towns in Oklahoma c. how tariffs on shoes affects the shoe industry d. the effect on the economy of changes in the nation's unemployment rate