-Refer to Exhibit 11-1

Multiple Choice

-Refer to Exhibit 11-1.The economy is currently at point 1.Suppose the federal government increases purchases and there is complete crowding out.As a result,the aggregate demand (AD) curve in the exhibit

A) will maintain its present position at AD_1.
B) will shift rightward,ideally so that it goes through point 2.
C) will shift rightward,ideally so that it goes beyond point 2.
D) will shift leftward.
E) ​does not shift,but the SRAS curve will shift rightward so that it goes through point 3.