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Figure 27-8 -Refer to Figure 27-8.If Government Purchases Increase by $100 Billion

Question 53

Multiple Choice

Figure 27-8
Figure 27-8 -Refer to Figure 27-8.If government purchases increase by $100 billion and lead to an ultimate increase in aggregate demand as shown in the graph below,the difference in real GDP between point A and point B will be A) $100 billion. B) less than $100 billion. C) more than $100 billion. D) There is insufficient information given here to draw a conclusion.
-Refer to Figure 27-8.If government purchases increase by $100 billion and lead to an ultimate increase in aggregate demand as shown in the graph below,the difference in real GDP between point A and point B will be


A) $100 billion.
B) less than $100 billion.
C) more than $100 billion.
D) There is insufficient information given here to draw a conclusion.

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