Figure 27-11
-Refer to Figure 27-11.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.
A)would be equal to
B)would be greater than
C)would be less than
D)may be greater than or less than

Question

Figure 27-11 
-Refer to Figure 27-11.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.
A)would be equal to 
B)would be greater than 
C)would be less than 
D)may be greater than or less than

Quizplus · Accepted Answer

The shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increase by $50 billion, then the aggregate demand curve shifts rightward by an amount equal to the increase in government purchases, which is the distance from point A to point B. Therefore, the distance from point A to point B would be greater than $50 billion.

Figure 27-11 -Refer to Figure 27-11.In the Graph Above,the Shift from AD1