Refer to the information provided in Figure 12.2 below to answer the questions that follow. 
Figure 12.2
-Refer to Figure 12.2. Firms respond to an increase in government spending by mostly increasing output when the aggregate demand curve shifts from
Definitions:
Unit Elastic
Describes a demand or supply situation where a change in price leads to a proportional change in the quantity demanded or supplied.
Total Revenue
The total income generated by a business through the sale of goods or services before any costs or expenses are deducted.
Downward-sloping
A graphical representation indicating a negative relationship between two variables, such as price and quantity demanded in the demand curve.
Elasticity of Demand
A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively expressed as the percentage change in quantity demanded divided by the percentage change in price.
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Q16: Refer to Figure 12.2. In response to
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Q256: In the long run, the Phillips curve