A shift of the aggregate demand curve from ad1 to ad0 might be caused by a(n) increase in investment spending.
A demand curve in economics is a graph that shows the relationship between the cost of a given good and the amount that is desired at that cost. Demand curves may be applied to both the price-quantity connection for a single customer and the price-quantity relationship for all consumers in a given market.
The law of demand states that when the price of a particular good rises, the quantity required falls, all other things being equal. This is shown by the demand curve moving downward from the left to the right.
The price is implied to be the independent variable in this formulation, and the quantity to be the dependent variable. Economics is an exception to the general norm that the independent variable appears on the horizontal or x-axis.
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