1) Recall that the components of aggregate demand are C-consumption spending, I - investment
spending, G - government spending, and X - M-net exports. An increase in one of these
components will cause an increase in aggregate demand, which is shown as a shift to the right of
the aggregate demand curve. Draw a correctly labeled graph of aggregate demand and show the
effect of an increase in investment spending. Label the original AD curve AD, and the new AD
curve AD
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1) Recall that the components of aggregate demand are C-consumption spending, I - investment
spendi...
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