-In the above figure, if the economy is initially at point D and government expenditure increases, the economy will

Name: -In the above figure, if the economy is initially at point D and government expenditure increases, the economy will
Brand: Quizplus
Rating: 4.7 (54 reviews)

Question

Quizplus · Accepted Answer

Government expenditure increases will shift the aggregate demand curve to the right, leading to an increase in output and a higher price level. This will move the economy from point D to point C.

-In the Above Figure, If the Economy Is Initially at Point