Suppose a country offers a new investment tax credit. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?

Investment Tax Credit

Investment tax credit is a tax incentive that reduces the tax liability of businesses for specific investments in assets or projects, encouraging capital investment.

Aggregate Supply

The total amount of goods and services that producers are willing and able to supply at different price levels in an economy over a specific time period.

Aggregate Demand

Total requirement for all products and services in an economy, factored at a certain overall price level during a designated period.