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A-Level Economics · AD shift right (with multiplier) diagram question

Which point is the FINAL equilibrium, once the multiplier has worked through?

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The diagram

The answer

Point G. AS crosses AD3 at point G: price level P₃, real output Y₃. Both shifts counted. Follow the chain: G rises → AD1 to AD2 → equilibrium F. Then the multiplier → AD2 to AD3 → equilibrium G. The final equilibrium is always where AS crosses the LAST demand curve.

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