Figure 13-6
-Refer to Figure 13-6. Suppose the government purchases economy rise by $100. What is the new equilibrium level of real GDP?
A) $1,700
B) $1,800
C) $1,900
D) $2,100

Question

Figure 13-6 
-Refer to Figure 13-6. Suppose the government purchases economy rise by $100. What is the new equilibrium level of real GDP?
A) $1,700 
B) $1,800 
C) $1,900 
D) $2,100

Quizplus · Accepted Answer

The correct answer is B because the government purchases economy rise by $100, the aggregate demand curve will shift to the right by $100. This will lead to a new equilibrium level of real GDP of $1,800.

Figure 13-6 -Refer to Figure 13-6. Suppose the Government Purchases Economy Rise