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Refer to Figure 11

Question 97

Multiple Choice

Refer to Figure 11.1.Assume aggregate demand is represented by AD<sub>1</sub>,full-employment output is $6.0 trillion,and the MPC is 0.75.The spending fiscal stimulus needed to reach full-employment equilibrium is A) $1 trillion. B) $2 trillion. C) $0.4 trillion D) $0.1 trillion. Refer to Figure 11.1.Assume aggregate demand is represented by AD1,full-employment output is $6.0 trillion,and the MPC is 0.75.The spending fiscal stimulus needed to reach full-employment equilibrium is


A) $1 trillion.
B) $2 trillion.
C) $0.4 trillion
D) $0.1 trillion.

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