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 What Is A Positive Shock In Investment Demand?
What is a positive shock in investment demand and what consequences does it have?
 01 Jun 2008 02:27
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 Whenever Employers/Investors due to any reason move from a pessimism to an optimism about the economy their investment increases pushing up the aggregate demand. This is called a positive shock. Some Results are as follows :-

1) Greater Employment, cheap labor so manufacturing is increased.
2) sharp increases in aggregate demand.
3) Increased output so an increased income by consumers.
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  02 Jun 2008 11:39
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