Use the Following to Answer Questions

question 137

Multiple Choice

Use the following to answer questions.
Exhibit: Aggregate Demand and Investment 1
-(Exhibit: Aggregate Demand and Investment 1) Economic performance would be improved by stimulating investment demand which would shift the

• A) aggregate demand to the right to restore long-run equilibrium at "b".
• B) short-run aggregate supply to the right to restore long-run equilibrium at "c".
• C) aggregate demand curve and the short-run aggregate supply curve to the right to restore long-run equilibrium between "b" and "c". The long-run aggregate supply curve does not shift.
• D) long-run aggregate supply to the left to restore long-run equilibrium at "a".

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