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    Exam 23: Real Gdp and the Price Level in the Short Run
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    FIGURE 23-5 Refer to Figure 23-5
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FIGURE 23-5 Refer to Figure 23-5

Question 65

Question 65

Multiple Choice

  FIGURE 23-5 Refer to Figure 23-5.Suppose that an increase in government purchases caused the AD curve to shift to the right,as shown.If the simple multiplier in this model is 5,then how much was the increase in government purchases? A) 30 B) 40 C) 50 D) 12 E) not enough information to know FIGURE 23-5 Refer to Figure 23-5.Suppose that an increase in government purchases caused the AD curve to shift to the right,as shown.If the simple multiplier in this model is 5,then how much was the increase in government purchases?


A) 30
B) 40
C) 50
D) 12
E) not enough information to know

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