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

---

Definitions:

Monthly Sales

The total revenue generated from sales transactions within a month.

Target Profit

The specific amount of net income that a company aims to achieve for a certain period.

Fixed Expenses

Consistent costs that do not change in total over a short period, regardless of the level of production or sales.

Break Even

A financial analysis point where total revenue exactly covers total costs, with neither profit nor loss.