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

Which point is the equilibrium immediately after the rise in G, but BEFORE the multiplier rounds happen?

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The answer

Point F. The initial injection alone takes you from E to F. The multiplier then carries you on to G. Two shifts, three equilibria. The rise in G moves AD1 to AD2, so the economy goes E → F. Only then does the recycled income move AD2 to AD3, taking it F → G. Marking both is what earns the analysis marks.

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