Exhibit 11-1 
-Refer to Exhibit 11-1.The economy is currently at point 1.Suppose the federal government increases purchases and there is complete crowding out.As a result,the aggregate demand (AD) curve in the exhibit
A) maintains its present position at AD1.
B) shifts rightward,but does not shift rightward by enough to go through point 2.
C) shifts rightward by enough to go through point 2.
D) shifts leftward.
Correct Answer:
Verified
Q31: Some economists argue that a rise in
Q42: Q43: Which of the following illustrates the wait-and-see Q53: Suppose the government increases spending on public Q54: If an individual pays an additional $0.30 Q58: Suppose the government attempts to stimulate the Q64: Fiscal policy is implemented primarily by Q75: Crowding out suggests that Q89: An example of contractionary fiscal policy is Q95: An example of contractionary fiscal policy is
A) local
A) high taxes reduce
A)
A)
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