Refer to the Graphs Above, in Which the Numbers in Parentheses

question 59

Multiple Choice

Refer to the graphs above, in which the numbers in parentheses near the AD₁, AD₂, and AD₃ labels indicate the levels of investment spending associated with each curve. All figures are in billions. What is the desired level of investment spending in this economy if it is to achieve a noninflationary full-employment level of real GDP?

• A) $50
• B) $100
• C) $150
• D) $225

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