2. Refer to Figure 2 in the Appendix and assume that Q1 is $400 and Q2 is $500, the price level is stuck at P1, and the slopes of the AE lines in Figure 2a are 0.75 and equal to the MPC. In what direction and by how much does the aggregate expenditures schedule in Figure 2 a need to shift to move the aggregate demand curve in Figure 2b from AD1 to AD2 ? What is the multiplier in this example? Given the multiplier, what must be the distance between AD1 and the broken line to its right at P1 ? LO12.7 ta s nily real output rises from Q1 Io Q2, the same maltipliod inctse in real GDP as that in the top graph. The initial inceue t investment in the top graph has shifted the AD curve it 2I 2 kower graph by a horizontal distance equal to the caret it irvestmen times the multiplier. This particular change it in GDP is still associated with the constant priee Jevel Fr of genemize, Shift of AD curve = initial change in spendist multiplier 2. Refer to Figure 2 in the Appendix and assume that Q1 is $400 and Q2 is $500, the price level is stuck at P1, and the slopes of the AE lines in Figure 2a are 0.75 and equal to the MPC. In what direction and by how much does the aggregate expenditures schedule in Figure 2 a need to shift to move the aggregate demand curve in Figure 2b from AD1 to AD2 ? What is the multiplier in this example? Given the multiplier, what must be the distance between AD1 and the broken line to its right at P1 ? LO12.7 ta s nily real output rises from Q1 Io Q2, the same maltipliod inctse in real GDP as that in the top graph. The initial inceue t investment in the top graph has shifted the AD curve it 2I 2 kower graph by a horizontal distance equal to the caret it irvestmen times the multiplier. This particular change it in GDP is still associated with the constant priee Jevel Fr of genemize, Shift of AD curve = initial change in spendist multiplier