Friday, September 27, 2013

What effect does increase in investment have on price, output and employment? and 2013-05-16 Russell Investments Center

What effect does increase in investment have on price, output and employment?



When there is an increase in investment, aggregate demand increases...so what effect does this have on the price level, real output and the employment?


Investment best answer:

Answer by ru40342
In closed economy, when investment increase (FDI or portfolio), Aggregate demand will rise and output will rise as well. Increased aggregate demand will cause rise in prices (in long run) and decrease the unemployment

Hope this helps!

sportandstock.blogspot.com


Investment

2013-05-16 Russell Investments Center
Investment

Image by tiff_seattle
2013-05-16 Russell Investments Center



Orignal From: What effect does increase in investment have on price, output and employment? and 2013-05-16 Russell Investments Center

No comments:

Post a Comment