Use the figure below to answer the following questions.

Figure 26.2.1
-Refer to Figure 26.2.1.Which graph illustrates what happens when government expenditure increases?
A)(a)
B)(b)
C)(c)
D)(d)
E)None of the above

Question

Use the figure below to answer the following questions.
  
Figure 26.2.1
-Refer to Figure 26.2.1.Which graph illustrates what happens when government expenditure increases?
A)(a) 
B)(b) 
C)(c) 
D)(d) 
E)None of the above

Quizplus · Accepted Answer

An increase in government expenditure typically shifts the aggregate demand curve to the right, which is illustrated by graph (c).

Use the Figure Below to Answer the Following Questions