Figure 34-9
-Refer to Figure 34-9. Suppose the multiplier is 2 and there is no crowding-out, but there is an accelerator effect. If the economy is currently at point A, then an increase in government purchases of $10 will likely increase aggregate demand to point _____ where output is $_____.

Question

Figure 34-9  ​
-Refer to Figure 34-9. Suppose the multiplier is 2 and there is no crowding-out, but there is an accelerator effect. If the economy is currently at point A, then an increase in government purchases of $10 will likely increase aggregate demand to point _____ where output is $_____.

Quizplus · Accepted Answer

The Answer of Figure 34-9  ​
-Refer to Figure 34-9. Suppose the multiplier is 2 and there is no crowding-out, but there is an accelerator effect. If the economy is currently at point A, then an increase in government purchases of $10 will likely increase aggregate demand to point _____ where output is $_____.

Figure 34-9 ​

Figure 34-9