Refer to the information provided in Figure 34.1 below to answer the question(s) that follow. Figure 34.1
-Refer to Figure 34.1. If the economy is open and the government increases spending by 25, the new equilibrium output is

Question

Refer to the information provided in Figure 34.1 below to answer the question(s) that follow.  Figure 34.1
-Refer to Figure 34.1. If the economy is open and the government increases spending by 25, the new equilibrium output is

Quizplus · Accepted Answer

The increase in government spending shifts the aggregate demand curve to the right, leading to a higher equilibrium output. The new equilibrium output is 118.75.

Refer to the Information Provided in Figure 34