Figure 27-11 -Refer to Figure 27-11. If Government Purchases Increase by $100

question 62

Multiple Choice

Figure 27-11
-Refer to Figure 27-11. 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.