Figure 13-6 -Refer to Figure 13-6. Suppose Government Purchases Rise by $100

Multiple Choice

Figure 13-6
-Refer to Figure 13-6. Suppose government purchases rise by $100. In the aggregate demand/aggregate supply model,

A) the aggregate demand curve shifts to the right by $100 at any given price level.
B) the aggregate demand curve shifts to the right by ($100 * the multiplier) at any given price level.
C) there is a downward movement along the aggregate demand curve such that real GDP demanded increases by $100.
D) there is a downward movement along the aggregate demand curve such that real GDP demanded increases by ($100 * the multiplier) .