Figure 16-12 -Refer to Figure 16-12.An Increase in Government Purchases of $200

question 241

Multiple Choice

Figure 16-12
-Refer to Figure 16-12.An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2.Assuming a constant price level,the difference in real GDP between point A and point B will be ________ $200 billion.

• A)equal to
• B)less than
• C)greater than
• D)There is insufficient information given here to draw a conclusion.

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