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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 2

An aggregate demand and short-run aggregate supply diagram is used to illustrate the effect of a rise in investment spending by firms in an economy. All other things being equal, which one of the following would be shown on the diagram?

A rightward movement along the aggregate demand curve

A rightward movement along the short-run aggregate supply curve

A leftward shift of the aggregate demand curve

A leftward shift of the short-run aggregate supply curve

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts