-Refer to the above figure.If the economy is at E and the government wants to increase aggregate demand to ,but the increase in spending only shifts the aggregate demand curve to ,then
A)complete crowding out has occurred.
B)some crowding out has occurred.
C)the increased borrowing caused interest rates to fall.
D)the short-run aggregate supply curve is steeper than the figure indicates.

Question

-Refer to the above figure.If the economy is at E and the government wants to increase aggregate demand to  ,but the increase in spending only shifts the aggregate demand curve to  ,then
A)complete crowding out has occurred. 
B)some crowding out has occurred. 
C)the increased borrowing caused interest rates to fall. 
D)the short-run aggregate supply curve is steeper than the figure indicates.

Quizplus · Accepted Answer

The Answer of 
-Refer to the above figure.If the economy is at E and the government wants to increase aggregate demand to  ,but the increase in spending only shifts the aggregate demand curve to  ,then
A)complete crowding out has occurred. 
B)some crowding out has occurred. 
C)the increased borrowing caused interest rates to fall. 
D)the short-run aggregate supply curve is steeper than the figure indicates.

-Refer to the Above Figure