kschro45611 kschro45611

10-01-2024
Business

contestada

Refer to Exhibit 11-1. The economy is currently at point 1. Suppose the federal government increases purchases and there is complete crowding out. As a result, What will happen to the aggregate demand (AD) curve in the exhibit?
1) The AD curve will shift to the right
2) The AD curve will shift to the left
3) The AD curve will remain unchanged
4) Cannot be determined from the given information

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