Assume the Equilibrium Level of Output Is Less Than Full

Multiple Choice

Assume the equilibrium level of output is less than full employment.To achieve full-employment equilibrium,the aggregate demand curve must shift to the right by

A) The amount of the recessionary GDP gap.
B) An amount less than the recessionary GDP gap because the spending increase causes the multiplier process to occur.
C) An amount greater than the recessionary GDP gap because the spending increase raises the price level.
D) An amount less than the recessionary GDP gap because the spending increase raises output and prices.