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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 5

Multinational technology firms engage in a major wave of investment in a developing country, constructing advanced data centres and network infrastructure to exploit low energy costs. All other things being equal, the result of this investment for that country's economy would be

a movement along both its aggregate demand curve and long-run aggregate supply curve.

a movement along its aggregate demand curve and a shift in its long-run aggregate supply curve.

a shift in its aggregate demand curve and a movement along its long-run aggregate supply curve.

a shift in both its aggregate demand curve and long-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