Suppose an Increase in Investment Spending Results in an Increase

question 81

True/False

Suppose an increase in investment spending results in an increase in equilibrium real GDP and a rise in the equilibrium price level. This implies that the aggregate supply curve must be vertical.

---

Definitions:

Psychological Characteristics

The traits and features that describe an individual's mental and emotional tendencies.

Parasympathetic

Part of the autonomic nervous system that conserves energy and resources during rest and digest states, controlling functions such as digestion and heart rate.

Autonomic Nervous System

The part of the nervous system that unconsciously controls the functions of internal organs and glands.

Rest-And-Digest

The rest-and-digest response, also known as the parasympathetic response, is a physiological reaction that decreases stress and energy expenditure by slowing the heart rate and increasing intestinal and gland activity.