Using Figure 11.3, if Q3 represents full employment, then a shift from AD1 to:
A. AD2 will result in a full-employment equilibrium at point Y.
B. AD2 will close the GDP gap.
C. AD3 will take the economy past full employment to an equilibrium at point Z
D. AD3 will result in a full-employment equilibrium at point X.
Answer:D
Using Figure 11.3, if Q3 represents full employment, then a shift from AD1 to:
A. AD2 will result in a full-employment equilibrium at point Y. B. AD2 will close the GDP gap. C. AD3 will take the economy past full employment to an equilibrium at point Z D. AD3 will result in a full-employment equilibrium at point X.