Figure: Aggregate Demand Shifts 3 Refer to the figure. If the government lowers its spending growth so that the AD curve shifts from AD₁ to AD₂, the multiplier effect will cause the AD curve to: A) shift back to AD₁. B) remain at AD₂. C) shift farther to AD₃. D) shift all the way out to AD₄.

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The Answer of Figure: Aggregate Demand Shifts 3 Refer to the figure. If the government lowers its spending growth so that the AD curve shifts from AD₁ to AD₂, the multiplier effect will cause the AD curve to: A) shift back to AD₁. B) remain at AD₂. C) shift farther to AD₃. D) shift all the way out to AD₄.

Figure: Aggregate Demand Shifts 3 Refer to the Figure