If investment spending increases, the planned aggregate spending line: shifts up

Question

If investment spending increases, the planned aggregate spending line: shifts up. becomes steeper. shifts down. becomes flatter. 10. In the aggregate expenditures model, if aggregate expenditures are lower than real GDP: aggregate output increases. employment increases. there will be unplanned increases in inventories. actual real output is less than equilibrium real output. If investment spending increases, the planned aggregate spending line: shifts up. becomes steeper. shifts down. becomes flatter.

Explanation / Answer

a. shifts up

b. actual real output is lesser than equilibrium real output.

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