An increase in government spending on health care is likely to shift the _____ curve to the _____.
A) short-run aggregate supply; right
B) short-run aggregate supply; left
C) aggregate demand; right
D) aggregate demand; left

Question

Quizplus · Accepted Answer

An increase in government spending on health care will increase the demand for health care goods and services, leading to an increase in aggregate demand. Therefore, the aggregate demand curve will shift to the right.

An Increase in Government Spending on Health Care Is Likely