Figure 16-1
-Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does an increase in government expenditures move the economy?

Name: Figure 16-1 -Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does an increase in government expenditures move the economy?
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Question

Figure 16-1 
-Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does an increase in government expenditures move the economy?

Quizplus · Accepted Answer

An increase in government expenditures shifts the aggregate demand curve to the right, moving the economy from point c and 1 to point b and 2 in the short run.

Figure 16-1 -Refer to the Figure 16-1.If the Economy Starts at C