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Mr Davis 97
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Homework Statement
If the AD curve intersects the AS curve in the intermediate section of the AS curve, can you calculate the increase in real output in the AD/AS model resulting from the $100 million increase in government spending? If not, what additional information would you need?
Homework Equations
The Attempt at a Solution
I'm not sure if anyone could help me with this, since this forum doesn't have a specific section for economics, but I've tried for about two hours to figure out what the answer is, which I'm assuming is simple. I've looked around in my textbook and on the internet to no avail.