Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

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?

1 Answer

Relevance
  • 8 years ago
    Favorite 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
Still have questions? Get your answers by asking now.