Figure 18-11

-Refer to Figure 18-11.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 18-11
 
-Refer to Figure 18-11.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 distance from point A to point B would be greater than $50 billion because the increase in government purchases would have a multiplier effect, leading to a larger total change in aggregate demand.

Figure 18-11 -Refer to Figure 18-11.In the Graph Above,the Shift from AD₁