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) short-run aggregate supply line; downward
C) aggregate demand curve; left
D) short-run aggregate supply line; upward
Correct Answer:
Verified
Q16: Higher rates of inflation reduce planned spending
Q17: Because increases in inflation reduce planned spending
Q18: For a fixed target real interest rate
Q19: Lower rates of inflation increase planned spending
Q20: Increases in inflation redistribute resources from _-spending
Q22: For a given level of inflation, if
Q23: Which of the following will shift the
Q24: If the Federal Reserve raises its target
Q25: For a given level of inflation, if
Q26: An upward shift in the Fed's policy
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