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Figure: Effects of Policy Shifts
-(Figure: Effects of Policy Shifts)If government spending increases,shifting aggregate demand from _____ to _____,aggregate output will increase from _____ to _____.

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Use the following to answer questions 
Figure: Effects of Policy Shifts 
-(Figure: Effects of Policy Shifts)If government spending increases,shifting aggregate demand from _____ to _____,aggregate output will increase from _____ to _____.

Quizplus · Accepted Answer

When government spending increases, it shifts aggregate demand from AD₀ to AD₁, resulting in an increase in aggregate output from Q₀ to Q_f.

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