The MPC $=0\mathrm{.}75.$ Suppose the Government uses Government Spending to close a $2,000$ inflationary gap.

Group of answer choices

The AE line shifts up by $500$ and AD shifts right by $500$

The AE line shifts down by $500$ and AD shifts left by $2,000$

None of these answers is correct

The AE line shifts down by $500$ and AD shifts right by $2,000$

The AE line shifts up by $500$ and AD shifts left by $2,000$

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