Answered: If C=38,000+.6DI and the government…

If C=38,000+.6DI and the government increases its spending on infrastructure by 2 billion dollars, what is the impact on Aggregate Demand?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 8P

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If C=38,000+.6DI and the government increases its spending on infrastructure by 2 billion dollars, what is the
impact on Aggregate Demand?
The AD curve will shift to the left by $3.33 bill.
O The AD curve will shift to the left by $5 bill.
O The AD curve will shift to the right by $5billion
The AD curve will shift to the right by $3.33bill.

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