Figure 16-11 
-Refer to Figure 16-11.If government purchases increase by $100 billion and lead to an ultimate increase in aggregate demand as shown in the graph,the difference in real GDP between point A and point B will be
A) $100 billion.
B) less than $100 billion.
C) more than $100 billion.
D) There is insufficient information given here to draw a conclusion.
Correct Answer:
Verified
Q124: The aggregate demand curve will shift to
Q125: Economists refer to the series of induced
Q126: Table 16-5 Q127: The tax multiplier equals the change in Q128: Suppose the government spending multiplier is 2.The Q130: The tax multiplier is smaller in absolute Q131: The government purchases multiplier equals the change Q132: Figure 16-11 Q133: Which of the following would increase the Q134: Table 16-6 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
![]()
![]()
![]()