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.
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.
Chapter20: Aggregate Demand And Supply
Section: Chapter Questions
Problem 8SQP
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Transcribed Image Text: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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