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Investment increases to $1.5 trillion, and the multiplier when the price level is constant is 8. Draw the new aggregate demand curve and label it. Draw a point to indicate the quantity of real GDP demanded if the price level remains at 115. Label it 1.
An increase in investment shifts the AE curve and the AD curve .
A. downward; leftward
B. upward; leftward
C. upward; rightward
D. downward; rightward
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Answers: 3
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Investment increases to $1.5 trillion, and the multiplier when the price level is constant is 8. Dra...
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