Spending on the war in Afghanistan is essentially categorized as government purchases. How do increases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the right.
B) They will move the economy up along a stationary aggregate demand curve.
C) They will move the economy down along a stationary aggregate demand curve.
D) They will shift the aggregate demand curve to the left.
A
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Protectionism refers to:
A) subsidizing imports. B) reduction of trade barriers. C) increased export of goods and services. D) reducing the competition faced by domestic firms.
The Taylor rule relates
a. inflation rates to unemployment rates. b. the federal funds rate to inflation and output rates. c. differences in the federal funds rate from its target to differences in inflation and unemployment from its target. d. differences in the federal funds rate from its target to differences in inflation and unemployment from its target. e. All of the above
Stockholders normally receive higher expected returns, compared to bondholders, since
A. the government mandates higher payments to stockholders. B. stock prices go up and down while bond prices do not. C. profits may only be retained by the corporation and not paid out to stockholders. D. stockholders could be left with nothing if the corporation fails, and bondholders will receive interest payments even if the corporation suffers losses.
The graph below represents a competitive market for a product where the government has set a price ceiling of 0A. What quantity will buyers be able to buy after the imposition of the price ceiling?
A. 0J
B. 0L
C. JL
D. KL