(trillions of dollars per year) Figure 11.1 Assuming that the aggregate demand is at AD1 and equilibrium a, if the MPC is .75, how much initial stimulus would be need to move the economy to full employment? $800 billion $600 billion $100 billion $400 billion D Question 6 2 pts Refer to the figure below: AS AD, AD, AD3 K d Price Level (average price) PF e 5.8 6.0 6.2 QF Real Output (trillions of dollars per year) Figure 11.1 Assume that OF is full-employment output and the level of aggregate spending is represented by AD1. If AD, increases to AD2, which of the following statements is correct? Excess AD and inflation will be the result. Full employment will be reached. A lower price level will result. Full employment will not be reached because some of the additional spending results in higher prices rather than higher output