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Figure 23-3 -Refer to Figure 23-3. Suppose That Government Spending Increases, Shifting

Question 11

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Figure 23-3 Figure 23-3 -Refer to Figure 23-3. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP<sub>1</sub> to GDP<sub>2</sub>, and this amount is $200 billion. If the MPC is 0.8, then what is the distance between N and L or by how much did government spending change? A) $16 billion B) $40 billion C) $200 billion D) $1,000 billion
-Refer to Figure 23-3. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP1 to GDP2, and this amount is $200 billion. If the MPC is 0.8, then what is the distance between N and L or by how much did government spending change?


A) $16 billion
B) $40 billion
C) $200 billion
D) $1,000 billion

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