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Investment in aggregate demand

Investment in aggregate demand

AD/AS diagram showing higher investment shifting aggregate demand from AD1 to AD2, raising real GDP from Y1 to Y2 and the price level from P1 to P2

In macroeconomics, investment means spending by firms on capital goods such as machinery, warehouses, vehicles, software, and inventories. It does not mainly mean buying shares, cryptocurrency, or an existing house.

2.2.3 Investment (I) Lesson

  1. A Level
  2. /Economics
  3. /2.2.3 Investment (I)