Refer to Figure 13.5 for the Following Question

question 126

Multiple Choice

Refer to Figure 13.5 for the following question.
Figure 13.5

-Refer to Figure 13.5. 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 make a conclusion.

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Definitions:

Structured Interview

An interviewing process that uses a set of predetermined questions to ensure consistency across all interviews.

Closing Interview

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