Chapter 11 Homework i Saved Help Save & Exit Submit Check my work Suppose that an increase in income transfers rather than government spending was the preferred policy for stimulating the economy depicted in the figure below. 20 points Direct impact of rise in government spending = $200 billion eBook Indirect impact via increased consumption = $600 billion Print Price Level (average price) .....' Current price level References AD 2 AD 1 AD 3 O 5.6QE 5 .8 6.4 Real Output (trillions of dollars per year) By how much would transfers have to increase to attain the desired shift of AD? Mc