-Suppose the price level is fixed. If investment increases by $1 trillion and the aggregate expenditure curve is shown in the figure above, in response equilibrium expenditure increases by ________.
Definitions:
Equilibrium Quantity
The quantity of goods or services supplied is equal to the quantity demanded at the market price.
Shift Demand
A change in the amount of a product that consumers are willing and able to purchase at any given price level, typically caused by changes in consumer preferences, income, or prices of related goods.
Substitute Good
A product or service that can be used in place of another to satisfy consumer demand or preferences.
Complementary Good
A good whose demand is increased when the price of another good is decreased, as the two goods are often used together, indicating a positive cross-price elasticity.
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