Multiple Choice
- Refer to Figure 11.3.Assume aggregate demand is represented by AD1 and full-employment output is $5.6 trillion.The aggregate demand excess is equal to the distance between
A) Point a and point e
B) Point a and point d
C) Point a and point b.
D) Point b and point e
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Tax cuts and increased income transfers have
Q18: The second crisis of economic theory refers
Q19: The general formula for calculating the desired
Q21: Assume the AS curve is upward-sloping.If the
Q23: An example of fiscal policy occurs when
Q24: If the government purchases multiplier is 4
Q28: Which of the following is an income
Q83: A tax increase of $250 will exactly
Q84: Income transfers become part of aggregate demand
Q132: The multiplier ensures that equilibrium GDP equals