-Refer to the above figure.Suppose that the economy initially is operating along AD1.If the government seeks to close the recessionary gap by raising government spending without any change in taxation,which moves the aggregate demand curve from to ,then to .Which of the following scenarios is true?

Question

-Refer to the above figure.Suppose that the economy initially is operating along AD1.If the government seeks to close the recessionary gap by raising government spending without any change in taxation,which moves the aggregate demand curve from

to

,then to

.Which of the following scenarios is true?

Quizplus · Accepted Answer

The Answer of 
-Refer to the above figure.Suppose that the economy initially is operating along AD1.If the government seeks to close the recessionary gap by raising government spending without any change in taxation,which moves the aggregate demand curve from  to  ,then to  .Which of the following scenarios is true?

-Refer to the Above Figure