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Referring to the figure, an increase in government purchases will AD, AD, AD, A. shift aggregate demand from AD, to AD3. B. have no effect on aggregate demand. C. shift aggregate demand from AD¡ to AD2. D. cause movement from point A to point B along AD1.

Referring to the figure, an increase in government purchases will AD, AD, AD, A. shift aggregate demand from AD, to AD3. B. have no effect on aggregate demand. C. shift aggregate demand from AD¡ to AD2. D. cause movement from point A to point B along AD1.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Referring to the figure, an increase in government purchases will

    
  • A.

    shift aggregate demand from AD1 to AD3.

  • B.

    have no effect on aggregate demand.

  • C.

    shift aggregate demand from AD1 to AD2.

  • D.

    cause movement from point A to point B along AD1.

Referring to the figure, an increase in government purchases will P AD, AD, AD, A. shift aggregate demand from AD¡ to AD3. B. have no effect on aggregate demand. C. shift aggregate demand from AD¡ to AD2. D. cause movement from point A to point B along AD1.
Transcribed Image Text:Referring to the figure, an increase in government purchases will P AD, AD, AD, A. shift aggregate demand from AD¡ to AD3. B. have no effect on aggregate demand. C. shift aggregate demand from AD¡ to AD2. D. cause movement from point A to point B along AD1.
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