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(8 points) Use the graph below to answer these questions. a. If the U.S. economy is currently at point J, what could cause a move
(8 points) Use the graph below to answer these questions. a. If the U.S. economy is currently at point J, what could cause a move to point K? b. What is happening to inventories if they are producing at point L? c. Suppose that you are at AE1 and government spending increases by $500 billion. How will this be shown on the graph? d. If the MPC is 0.65, how much did GDP change? Explain your answer.
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