-Referring to the graph above,assume that the economy is in equilibrium at point A,then an increase in government purchases shifts the IS curve to the right,while the real interest rate remains constant.Explain,step-by-step,how the components of expenditure adjust to bring the economy to its new equilibrium.

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-Referring to the graph above,assume that the economy is in equilibrium at point A,then an increase in government purchases shifts the IS curve to the right,while the real interest rate remains constant.Explain,step-by-step,how the components of expenditure adjust to bring the economy to its new equilibrium.

-Referring to the Graph Above,assume That the Economy Is in Equilibrium