Suppose firms become very optimistic about future business conditions and invest heavily in new capi Show more Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment draw an AD/AS diagram to show the SR effect of this optimism. explain why AQ of output supplied changes when firms invest more in new capital equipment the ad curve shift the orignal curve right. it results in a higher price and higher level of output. AQ of output supplied will increase b/c of the peoples misconception that prices are sticky and it will not adjust. ??? Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment draw an AQ of output demanded changes between the SR and the LR Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. how might the invstment boom affect the LRAS curve? Show less

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