Figure 27-12 -Refer to Figure 27-12.An Increase in Government Purchases of $200

Multiple Choice

Figure 27-12
-Refer to Figure 27-12.An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2.Assuming a constant price level,the difference in real GDP between point A and point B will be ________ $200 billion.

A) equal to
B) less than
C) greater than
D) There is insufficient information given here to draw a conclusion.