Refer to Figure 27-11. In the graph above, the shift from AD1 to ...

[jparksx]

Refer to Figure 27-11. In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by 50 billion, then the distance from point A to point B ________ 50 billion.
 
  A) may be greater than or less than B) would be less than
  C) would be greater than D) would be equal to

Question 2

Refer to Figure 28-9. Fed Chairman Paul Volcker's response to the ________ of the late 1970s is depicted in the figure above as a movement from C to D to A.
 
  A) appreciation of the dollar B) high inflation
  C) high unemployment D) deflation

[atrochim]

Answer to Question 1

C

Answer to Question 2

B

[jparksx]

TYSM

[fatboyy09]

Gracias!