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A temporary increase in government spending that leads to only a small decline in lifetime wealth...

A temporary increase in government spending that leads to only a small decline in lifetime wealth likely shifts the output demand curve to the

Question 17 options:

1)

 right by more than the rightward shift in output supply.

2)

 right by less than the rightward shift in output supply.

3)

 left by more than the leftward shift in output supply.

4)

 left by less than the leftward shift in output supply.

5)

 right by the same amount as the rightward shift in output supply.
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Answer #1

ANS 5. In this case option 1 is correct here i.e. right by more than the rightward shift in output supply. Reason behind this

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