:Suppose that the price level is constant and the investment decreases sharply. How would you show this decrease in the aggregate expenditures model? What would be the outcome for real GDP? How would you show this fall in investment in the aggregate demand-aggregate supply model assuming the economy is operating in what, in effect is a horizontal section of the aggregate supply curve?
Don't use plagiarized sources. Get Your Custom Essay on
Suppose that the price level is constant and the investment decreases sharply….