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-Refer to Exhibit 11

Question 58

Multiple Choice

-Refer to Exhibit 11.2, which shows the relationship between the price level and real GDP. Which of the following would be the result of an increase in government purchases? A) a movement from Q₃ to Q₂ B) a movement from e' to e* C) a movement from e'' to e* D) a movement from Q₂ to Q₃ E) a movement from Q₁ to Q₃
-Refer to Exhibit 11.2, which shows the relationship between the price level and real GDP. Which of the following would be the result of an increase in government purchases?


A) a movement from Q₃ to Q₂
B) a movement from e' to e*
C) a movement from e'' to e*
D) a movement from Q₂ to Q₃
E) a movement from Q₁ to Q₃

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