a. Assuming fixed (or constant) output prices, describe how you would apply the change in government expenditures in question 2 a. using an AS/AD diagram. That is, what curve(s) would shift & which direction? What is the cause of the shift(s)? What would the (final) change in real GDP be & why?

b. Simple expenditures multipliers are typically larger that real world or complex multipliers. Give me two reasons why & explain your answer.