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uestion $15$ of $15$

$$

Real GDP growth rate

$.$Now consider a possible side effect of the fall in the growth of $G$ : the reverse of crowding out, or crowding in$.$ If there $00\%$ crowding in$,$ what happens to the AD shift you described in part a$?$

The AD curve would

not shift because of crowding in$.$

shift towards its original position, and the effect of crowding in would exceed the initial spending effect.

shift back to its original position.

shift towards its original position, but the effect of crowding in would fall short of the initial spending effect.