Table 13-3
All figures in billions of base-year dollars

-Refer to Table 13-3. If government purchases increase by $100 billion, the aggregate expenditures curve will shift up by $_______ billion.
A) 100
B) 250
C) 400
D) 500

Question

Table 13-3
All figures in billions of base-year dollars
 
-Refer to Table 13-3. If government purchases increase by $100 billion, the aggregate expenditures curve will shift up by $_______ billion.
A) 100 
B) 250 
C) 400 
D) 500

Quizplus · Accepted Answer

In Table 13-3, the change in government purchases column shows that a $100 billion increase in government purchases leads to a $100 billion increase in aggregate expenditures, therefore the aggregate expenditures curve will shift up by $100 billion.

Table 13-3 All Figures in Billions of Base-Year Dollars