Assuming multiplier but no crowding-out or investment-accelerator effects,a $100 billion increase in government expenditures shifts aggregate
A)demand right by more than $100 billion.
B)demand right by less than $100 billion.
C)supply left by more than $100 billion.
D)supply left by less than $100 billion.

Question

Quizplus · Accepted Answer

Assuming multiplier but no crowding-out or investment-accelerator effects, a $100 billion increase in government expenditures shifts aggregate demand right by more than $100 billion.

Assuming Multiplier but No Crowding-Out or Investment-Accelerator Effects,a $100 Billion