Figure 18-4
-Refer to Figure 18-4.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.

Question

Figure 18-4 Figure 18-4 -Refer to Figure 18-4.In the graph above,the shift from AD<sub>1</sub> to AD<sub>2</sub> 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

Figure 18-4 -Refer to Figure 18-4.In the graph above,the shift from AD<sub>1</sub> to AD<sub>2</sub> 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

-Refer to Figure 18-4.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.

Quizplus · Accepted Answer

The shift from AD₁ to AD₂ represents an increase in aggregate demand due to an increase in government purchases. Therefore, the distance from point A to point B would be greater than $50 billion as it represents the total change in aggregate demand, which includes the multiplier effect.

Figure 18-4 -Refer to Figure 18-4.In the Graph Above,the Shift from AD1

Figure 18-4 -Refer to Figure 18-4.In the Graph Above,the Shift from AD₁