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An Increase in Investment Shifts the AE Curve Upward by an Amount

question 51

Multiple Choice

An increase in investment shifts the AE curve upward by an amount equal to the ________, and shifts the AD curve rightward by an amount equal to the ________.


Definitions:

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Equilibrium Level

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Unemployment

The condition of being without a job, while actively looking for one and being willing to work.

Minimum-wage Laws

Legislation that sets the lowest hourly wage rate that can be paid to workers, intended to protect employees from unduly low pay.

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