In the Keynesian Cross Diagram,an Increase in Investment Spending Because

question 2

Multiple Choice

In the Keynesian cross diagram,an increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ________,the equilibrium level of aggregate output to rise,and the IS curve to shift to the ________,everything else held constant.

• A)up;left
• B)up;right
• C)down;left
• D)down;right

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Definitions:

Oceanic Plateau

A large, flat, elevated region in the ocean basin, often composed of thickened crust that rises above the surrounding seafloor.

Fracture Zone

A linear zone of irregular topography on the ocean floor characterized by fractures and faults due to plate movements.

Linear Island Chain

A series of islands arranged in a straight line, formed by geological processes such as volcanic activity along a marine ridge.

Island Arc

A curved chain of volcanic islands located at a tectonic plate boundary, over a subduction zone.