Multiple Choice
-In the above figure the economy is initially at point A on the aggregate expenditure curve AE?. Suppose firms expect profits to increase and decide to increase investment. As a result
A) the AE curve shifts upward to a curve such as AE?.
B) the AE curve shifts downward to a curve such as AE?.
C) there is a movement along AE? to a point such as B.
D) there is a movement along AE? to a point such as C.
Correct Answer:

Verified
Correct Answer:
Verified
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