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According to Figure 11.2, if the level of spending increased from AD to ADz, which of the following statements would be correct? A. Full employment
According to Figure 11.2, if the level of spending increased from AD to ADz, which of the following statements would be correct? A. Full employment will be reached if the price level does not change. O B. Given AS, full employment will not be reached because some of the additional spending will drive up the price level instead of increasing output. C. To increase AD to AD using fiscal policy, the fiscal stimulus would have to be the amount of the AD shortfall divided by the multiplier. D. All of the above
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