Consider the country of morrow which is currently operating at full employment. suppose there is a decrease in investment

When investment decreases, this will make the interest rate to increase. When interest rates increase, the money supply will will decrease, shifting the aggregate demand curve to the left. This will eventually lead to a decrease in total spending, which in turn will result in an increase in the unemployment rate.

Suppose there is decrease in investment then supply curve to shift to the left, the price level to rise and out output level to fall.

Explanation:

Learn more about full employment, refer:

eds? ederal government or feds

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