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Refer to Figure 9.3 for the Following Questions

Question 55

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Refer to Figure 9.3 for the following questions.
Figure 9.3
Refer to Figure 9.3 for the following questions. Figure 9.3 -Suppose that in Figure 9.3, government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP₁ to GDP₂, and this amount is $400 billion. If the MPC is 0.75, then what is the distance between N and L or by how much did government spending change? A) $100 billion B) $200 billion C) $10 billion D) $300 billion
-Suppose that in Figure 9.3, government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP₁ to GDP₂, and this amount is $400 billion. If the MPC is 0.75, then what is the distance between N and L or by how much did government spending change?


A) $100 billion
B) $200 billion
C) $10 billion
D) $300 billion

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