Figure 27-11
-Refer to Figure 27-11. In the graph above, the shift from AD₁ to AD₂ represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion.

Question

Figure 27-11 Figure 27-11 -Refer to Figure 27-11. In the graph above, the shift from AD<sub>1</sub> to AD<sub>2</sub> represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion. A) would be equal to B) would be greater than C) would be less than D) may be greater than or less than

Figure 27-11 -Refer to Figure 27-11. In the graph above, the shift from AD<sub>1</sub> to AD<sub>2</sub> represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion. A) would be equal to B) would be greater than C) would be less than D) may be greater than or less than

-Refer to Figure 27-11. In the graph above, the shift from AD₁ to AD₂ represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion.

Quizplus · Accepted Answer

The distance from point A to point B would be greater than $50 billion due to the multiplier effect, which amplifies the initial increase in government spending.

Figure 27-11 -Refer to Figure 27-11. in the Graph Above, the Shift