For a given inflation rate, if increasing threats to domestic security cause the government to increase military spending, then the ______ shifts _____.
A)aggregate demand curve; right
B)aggregate demand curve; left
C)aggregate supply curve; left
D)aggregate supply curve; right

Question

Quizplus · Accepted Answer

Increased government spending, such as on military, raises overall demand in the economy, shifting the aggregate demand curve to the right.

For a Given Inflation Rate, If Increasing Threats to Domestic