Refer to Figure 23-5. Suppose that an increase in autonomous investment caused the AD curve to shift to the right, as shown. If the simple multiplier in this model is 4, then how much was the increase in investment? Select one: a. 30 b. 40 c. 50 d. 12 e. not enough information
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- The initial AD curve is \( AD_1 \). - The final AD curve after the shift is \( AD_2 \). Show more…
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