Refer to the information provided in Figure 13.2 below to answer the questions that follow. Figure 13.2
-Refer to Figure 13.2.The output multiplier is largest when the aggregate demand curve shifts from
A)AD1 to AD2.
B)AD3 to AD4.
C)AD5 to AD6.
D)The output multiplier is the same for all AD curve shifts shown in the figure.

Question

Refer to the information provided in Figure 13.2 below to answer the questions that follow.  Figure 13.2
-Refer to Figure 13.2.The output multiplier is largest when the aggregate demand curve shifts from
A)AD1 to AD2. 
B)AD3 to AD4. 
C)AD5 to AD6. 
D)The output multiplier is the same for all AD curve shifts shown in the figure.

Quizplus · Accepted Answer

The output multiplier is largest when the aggregate demand curve shifts from AD1 to AD2. This can be seen by comparing the slopes of the AD1 and AD2 curves, and noting that the steeper the slope, the larger the multiplier.

Refer to the Information Provided in Figure 13