Figure 27-4

-Refer to Figure 27-4.In the graph above,the shift from AD₁ to AD₂ represents the total change in aggregate demand.If government purchases increased by $50 billion,then the distance from point A to point B ________ $50 billion.

Question

Figure 27-4
Figure 27-4 -Refer to Figure 27-4.In the graph above,the shift from AD<sub>1</sub> to AD<sub>2</sub> represents the total change in aggregate demand.If government purchases increased by $50 billion,then the distance from point A to point B ________ $50 billion. A) would be equal to B) would be greater than C) would be less than D) may be greater than or less than

Figure 27-4 -Refer to Figure 27-4.In the graph above,the shift from AD<sub>1</sub> to AD<sub>2</sub> represents the total change in aggregate demand.If government purchases increased by $50 billion,then the distance from point A to point B ________ $50 billion. A) would be equal to B) would be greater than C) would be less than D) may be greater than or less than

-Refer to Figure 27-4.In the graph above,the shift from AD₁ to AD₂ represents the total change in aggregate demand.If government purchases increased by $50 billion,then the distance from point A to point B ________ $50 billion.

Quizplus · Accepted Answer

The shift from AD₁ to AD₂ represents the total change in aggregate demand. If government purchases increase by $50 billion, the new equilibrium point (B) would be to the right of the original equilibrium point (A), indicating an increase in both real GDP and price level. Therefore, the distance from point A to point B would be greater than $50 billion.

Figure 27-4 -Refer to Figure 27-4.In the Graph Above,the Shift from AD1

Figure 27-4 -Refer to Figure 27-4.In the Graph Above,the Shift from AD₁