According to aggregate demand and supply analysis,America's involvement in the Vietnam War had the effect of
A)increasing aggregate output,lowering unemployment,and raising the inflation.
B)decreasing aggregate output,lowering unemployment,and lowering the inflation.
C)increasing aggregate output,raising unemployment,and raising the inflation.
D)decreasing aggregate output,raising unemployment,and lowering the inflation.

Question

Quizplus · Accepted Answer

America's involvement in the Vietnam War led to increased government spending, which in turn increased aggregate demand. This increase in demand boosted aggregate output and lowered unemployment but also contributed to higher inflation rates.

According to Aggregate Demand and Supply Analysis,America's Involvement in the Vietnam