A change in government policy has increased the amount of

Last updated: 11/1/2023

A change in government policy has increased the amount of unemployment benefits that the government pays to the unemployed This increase in government expenditure has shifted the aggregate demand curve to the right This situation is depicted below in the movement of the economy from point A to point B In the figure below shift the appropriate curve to depict how the economy reacts in the long run when all prices are flexible To refer to the graphing tutorial for this question type please click here G 22 2 NEO 16 15 14 12 31 10 9 8 6 5 LRAS2 Q AD1 SRAS2 AD2