Figure 16-11
-Refer to Figure 16-11.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 16-11 Figure 16-11 -Refer to Figure 16-11.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 16-11 -Refer to Figure 16-11.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 16-11.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 between the two points represents the total change in aggregate demand. If government purchases increased by $50 billion, then the shift in aggregate demand would be greater than the distance between A and B on the graph, as evidenced by the fact that the new equilibrium point (AD₂) is farther to the right of the original equilibrium point (AD₁).

Figure 16-11 -Refer to Figure 16-11.In the Graph Above,the Shift from AD1

Figure 16-11 -Refer to Figure 16-11.In the Graph Above,the Shift from AD₁