FIGURE 23-5 -Refer to Figure 23-5.Suppose That an Increase in Government Purchases

Multiple Choice

FIGURE 23-5
-Refer to Figure 23-5.Suppose that an increase in government purchases caused the AD curve to shift to the right,as shown.If the simple multiplier in this model is 5,then how much was the increase in government purchases?

A) 30
B) 40
C) 50
D) 12
E) not enough information to know