Explaining the Multiplier Effect
2:27
Explaining the Multiplier Effect
Nov 29, 2021
tutor2u.net
SOLVED: 'The following graph shows the aggregate demand curve ADI for this economy before the change in government spendingUse the green line (triangle symbol) to plot the new aggregate demand curve ( ADz after the multiplier effect takes place For simplicity, assume that there is no crowding out:Hint: Be sure that the new aggregate demand curve ADz is parallel to the initial aggregate demand curve AD1 ) You can see the slope of ADI by selecting it on the graph.d 1OUTPUT (Trillions of dollars'
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