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Figure 9.1 -Refer to Figure 9.1. an Increase in Government Spending Causes

Question 17

Multiple Choice

Figure 9.1 -Refer to Figure 9.1. An increase in government spending causes: A) the economy to move from Point A to Point B, but will not shift the aggregate demand curve. B) the aggregate demand curve to shift from AD<sub>1</sub><sub> </sub>to AD<sub>2</sub>. C) the aggregate demand curve to shift from AD<sub>1</sub><sub> </sub>to AD<sub>0</sub>. D) neither a shift of the aggregate demand curve nor a change in real GDP. Figure 9.1
-Refer to Figure 9.1. An increase in government spending causes:


A) the economy to move from Point A to Point B, but will not shift the aggregate demand curve.
B) the aggregate demand curve to shift from AD1 to AD2.
C) the aggregate demand curve to shift from AD1 to AD0.
D) neither a shift of the aggregate demand curve nor a change in real GDP.

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