Investment increases to $1.5 trillion, and the multiplier when the price level is constant is 8. Draw the new aggregate demand curve and label it. Draw a point to indicate the quantity of real GDP demanded if the price level remains at 115. Label it 1.
An increase in investment shifts the AE curve ______ and the AD curve ______.
A. downward; leftward
B. upward; leftward
C. upward; rightward
D. downward; rightward