A shift of the aggregate demand curve from ad1 to ad0 might be caused by a(n) increase in investment spending.
<h3>What is a demand curve?</h3>
In economics, a demand curve is a graph that depicts the relationship between the price of a given good and the quantity desired at that price. Demand curves can be used to analyze the relationship between quantity and price for both a single client and for all customers in a specific 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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