What is the effect of an increase in investment on an economy's AE curve and AD curve? Price level (GDP price index, 2012-100) 1657 The graph shows an economy's aggregate demand curve. Investment increases by $0.5 trillion, and the multiplier is 4. Draw a new aggregate demand curve that shows the effect of this increase in investment. Label it AD,. 145- Draw a point to show the quantity of real GDP demanded following the increase in investment when the price level is 115. Label it B. 125- 115 An increase in investment shifts the AE curve and the AD curve A 105- O A. upward; leftward O B. downward; leftward OC. upward; rightward 85- OD. downward; rightward AD 12 14 Real GDP (trillions of 2012 dollars) 65+ 10 18 16 >>> Draw only the objects specified in the question.

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