(Solved): The graph shows an economy in a below full-employment equilibrium. To restore full employment, the ...

The graph shows an economy in a below full-employment equilibrium. To restore full employment, the government increases government expenditure by \( \$ 0.5 \) trillion. On the graph, draw a curve that shows the initial effect of this increased government expenditure. Label it \( A D_{0}+\Delta E \). The increase in real GDP sets off a multiplier process. Draw a curve that shows the multiplier effect that returns the economy to full employment. Label it \( A D_{1} \). Draw a point at the economy's long-run equilibrium. >> Draw only the objects specified in the question.