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(Figure: Effects of Policy Shifts) If Government Spending Increases, Shifting

Question 120

Multiple Choice

(Figure: Effects of Policy Shifts) If government spending increases, shifting aggregate demand from _____ to _____, aggregate output will increase from _____ to _____. (Figure: Effects of Policy Shifts)  If government spending increases, shifting aggregate demand from _____ to _____, aggregate output will increase from _____ to _____.   A)  AD<sub>1</sub>; AD<sub>0</sub>; Q<sub>f</sub>; Q<sub>0</sub> B)  AD<sub>1</sub>; AD<sub>0</sub>; Q<sub>0</sub>; Q<sub>f</sub> C)  AD<sub>0</sub>; AD<sub>1</sub>; Q<sub>0</sub>; Q<sub>f</sub> D)  AD<sub>0</sub>; AD<sub>1</sub>; Q<sub>f</sub>; Q<sub>0</sub>


A) AD1; AD0; Qf; Q0
B) AD1; AD0; Q0; Qf
C) AD0; AD1; Q0; Qf
D) AD0; AD1; Qf; Q0

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