Basically, the equity method is used to account the amount of an investment which is made by a company on an entity.However, this is done by an investor who contains a substantial amount of investment in the investee company.The investee records any adjustments in the other comprehensive income whereas the investor makes changes in the investment account.
Answer: Increase (+)
Explanation:
The Government component of the Aggregate Demand refers to money spent by the Government/ Public sector to provide certain needs for the economy such as Education, Defense and Healthcare.
When the government spends on infrastructural development such as the scenario described in the text, they are engaging in a form of spending known as Government Investment. This will increase the amount of G in the aggregate demand model.
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