CISDIN=9/8035 / 1335768Lid= 1 188289509&sna... CENGAGE | MINDTAP Q Search th Module Six Quiz Back to Assignment Attempts 2.2 Keep the Highest 2.2 / 4 7. Fiscal policy, the money market, and aggregate demand Consider a hypothetical economy in which households spend $0.50 of each additional dollar they earn and save the remaining $0.50. The following graph shows the economy's initial aggregate demand curve (AD]). Suppose the government increases its purchases by $3 billion. Use the green line (triangle symbol) on the following graph to show the aggregate demand curve ( AD2) after the multiplier effect takes place. Hint: Be sure the new aggregate demand curve (AD2) is parallel to AD1. You can see the slope of AD, by selecting it on the following graph