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Figure 112 Shows the Relationship Between the Price Level and Real

Question 142

Multiple Choice

Figure 11.2 shows the relationship between the price level and real GDP.Which of the following would be the result of an increase in government purchases?
Figure 11.2 shows the relationship between the price level and real GDP.Which of the following would be the result of an increase in government purchases? A) A movement from Q3 to Q2 B) A movement from e' to e* C) A movement from e to e* D) A movement from Q2 to Q3 E) A movement from Q1 to Q3


A) A movement from Q3 to Q2
B) A movement from e' to e*
C) A movement from e" to e*
D) A movement from Q2 to Q3
E) A movement from Q1 to Q3

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