Author Question: Refer to Figure 27-11. In the graph above, the shift from AD1 to AD2 represents the total change in ... (Read 28 times)

jparksx · **on:** Jun 29, 2018

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