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Refer to the Figure Above

Question 87

Multiple Choice

  Refer to the figure above. If aggregate demand curve shifts from AD<sub>2</sub> to AD<sub>1</sub>, the full multiplier effect on real GDP will be a decrease from: A)  Q<sub>3</sub> to Q<sub>1</sub> B)  Q<sub>2</sub> to Q<sub>4</sub> C)  Q<sub>2</sub> to Q<sub>1</sub> D)  Q<sub>3</sub> to Q<sub>4</sub> Refer to the figure above. If aggregate demand curve shifts from AD2 to AD1, the full multiplier effect on real GDP will be a decrease from:


A) Q3 to Q1
B) Q2 to Q4
C) Q2 to Q1
D) Q3 to Q4

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