QUESTION 35 AS1 110 A 100 AD2 AD1 900 960 1100 Real GDP FIGURE 23-5 Refer to Figure 23-5. Suppose that an increase in government purchases by 40 causes the AD curve to shift to the right as shown. The simple multiplier is and the multiplier is O 5; 1.2 O 4; 2.8, O 5; 1.5 O 4; 1.2 O 4; 1.5 Price Level
QUESTION 35 AS1 110 A 100 AD2 AD1 900 960 1100 Real GDP FIGURE 23-5 Refer to Figure 23-5. Suppose that an increase in government purchases by 40 causes the AD curve to shift to the right as shown. The simple multiplier is and the multiplier is O 5; 1.2 O 4; 2.8, O 5; 1.5 O 4; 1.2 O 4; 1.5 Price Level
Chapter1: Making Economics Decisions
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Transcribed Image Text:QUESTION 35
AS1
C
110
100
AD2
AD1
900
960
1100
Real GDP
FIGURE 23-5
Refer to Figure 23-5. Suppose that an increase in government purchases by 40 causes the AD curve to shift to the right, as shown. The simple multiplier is
and the multiplier is
O 5; 1.2
O 4; 2.8
O5; 1.5
4; 1.2
O4; 1.5
Price Level
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