If the economy shown in the figure begins on AD₁ and SRAS₁, what will happen in the short run and long run if the government begins a sustained period of increased spending? A) The economy moves from point C to E to B. B) The economy moves from point D to C to A. C) The economy moves from point D to C to E. D) The economy moves from point C to A to B.

Question

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The Answer of If the economy shown in the figure begins on AD₁ and SRAS₁, what will happen in the short run and long run if the government begins a sustained period of increased spending? A) The economy moves from point C to E to B. B) The economy moves from point D to C to A. C) The economy moves from point D to C to E. D) The economy moves from point C to A to B.

If the Economy Shown in the Figure Begins on AD1

If the Economy Shown in the Figure Begins on AD₁