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The Figure Below Shows the Effect of a 2011 Increase  Billions of 2011 Doll \text { Billions of } 2011 \text { Doll }

Question 71

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The figure below shows the effect of a 2011 increase in government purchases on the hypothetical path of real GDP compared to the path of potential GDP (the baseline) between 2011 and 2016.  The figure below shows the effect of a 2011 increase in government purchases on the hypothetical path of real GDP compared to the path of potential GDP (the baseline) between 2011 and 2016.    \text { Billions of } 2011 \text { Doll }  Potential GDP  \text { Real GDP }  (A) Using the  A D  cirve and  L A  line anglysis, expleng what is accurting between 2011 ant  2012 .  (B) Using the  A D  curve and  A A  line analysis, exglain what is accurring between 2012 ant 2014 . (C) Using the  A D  curve and  L A  line malysis, exglanin what is accuring between 2014 and 2016  Billions of 2011 Doll \text { Billions of } 2011 \text { Doll } Potential
GDP  Real GDP \text { Real GDP } (A) Using the ADA D cirve and LAL A line anglysis, expleng what is accurting between 2011 ant 2012.2012 .
(B) Using the ADA D curve and AAA A line analysis, exglain what is accurring between 2012 ant 2014 .
(C) Using the ADA D curve and LAL A line malysis, exglanin what is accuring between 2014 and 2016

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(A) As a resul of the increa5e in goverm...

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