Answered: If C=38,000+.6DI and the government…

If C=38,000+.6DI and the government increases its spending on infrastructure by 2 billion dollars, what is the impact on Aggregate Demand?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If C=38,000+.6DI and the government increases its spending on infrastructure by 2 billion dollars, what is the
impact on Aggregate Demand?
The AD curve will shift to the left by $3.33 bill.
O The AD curve will shift to the left by $5 bill.
O The AD curve will shift to the right by $5billion
The AD curve will shift to the right by $3.33bill.

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