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-Refer to Exhibit 11-1

Question 131

Multiple Choice

-Refer to Exhibit 11-1.The economy is currently at point 1.Suppose the federal government increases purchases and there is no crowding out.As a result,the aggregate demand (AD) curve in the exhibit A) maintains its present position at AD<sub>1.</sub> B) shifts rightward,ideally so that it goes through point 2. C) shifts rightward,ideally so that it goes beyond point 2. D) shifts leftward. E) ​does not shift,but the SRAS curve will shift rightward so that it goes through point 3.
-Refer to Exhibit 11-1.The economy is currently at point 1.Suppose the federal government increases purchases and there is no crowding out.As a result,the aggregate demand (AD) curve in the exhibit


A) maintains its present position at AD1.
B) shifts rightward,ideally so that it goes through point 2.
C) shifts rightward,ideally so that it goes beyond point 2.
D) shifts leftward.
E) ​does not shift,but the SRAS curve will shift rightward so that it goes through point 3.

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