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Will investment expenditure and government expenditure affect the aggregate supply?
Example : will an increase in Investment expenditure (I) or an increase in Gov expenditure (G) , both which are components of aggregate demand, shift the long run AS curve to the right?
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- vethuvettuLv 58 years agoFavorite Answer
Naturally if both are investment expenditures it increases the production and that means that the supply of goods increases and naturally the supply curve lifts to the right
Source(s): gk
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