If the government decides to increase spending on defense:
A. the aggregate demand curve will shift out temporarily.
B. the aggregate demand curve will shift in permanently.
C. the aggregate demand curve will shift in temporarily.
D. the aggregate demand curve will shift out permanently.
Ans: A. the aggregate demand curve will shift out temporarily.
Economics
You might also like to view...
According to the misperceptions theory, an anticipated 10% decrease in the money supply leads to a short-run reduction in the price level of
A) 0%. B) 5%. C) some amount between 0% and 10%. D) 10%.
Economics
A rise in government expenditure __________ the natural rate of interest
A) lowers B) raises C) has no effect on D) has an uncertain effect on
Economics