Historical note: The demand-pull inflation during the Vietnam War period (late 1960s, early 1970s)
a. resulted mostly from a fall in aggregate supply brought about by the war
b. was precipitated by the rapid oil price increases that made military goods more expensive (fuel for tanks and aircraft)
c. was sparked by the rise in taxes needed to finance the war
d. was caused in part by the increased demand for military goods
e. was fueled by a shift to the left of aggregate demand because people in the armed forces were no longer consumers
D
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In the above figure, a sales tax of $1 per unit imposed on sellers shifts the
A) demand curve rightward. B) supply curve leftward. C) demand curve leftward. D) supply curve rightward.
Suppose an elected official wishes to introduce a new government program. Under a PAYGO rule, this new program would be adopted only if
A) the budget deficit is reduced by the same amount as the costs of the new program. B) the budget deficit is reduced by half the amount of the costs of the new program. C) the new program does not result in an increase in the current or future budget deficit. D) none of the above