Assume the economy is operating in a horizontal range of the aggregate supply curve. This fall in investment would cause a multiple choice . rightward shift of aggregate demand and an increase in output equal to the rightward shift in aggregate demand. ⚫ leftward shift of aggregate demand and a fall in output equal to the leftward shift in aggregate demand. • upward shift of aggregate supply and a fall in the price level equal to the upward shift in aggregate supply. downward shift of aggregate supply and a fall in the price level equal to the downward shift in aggregate supply.

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