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Suppose the Congress Enacts a 5 Percent Decrease in Annual

Question 19

Multiple Choice

Suppose the Congress enacts a 5 percent decrease in annual military expenditures.Other things equal, this can be associated with:


A) a change in the slope of the aggregate demand curve.
B) a leftward shift of the aggregate demand curve.
C) a rightward shift of the aggregate demand curve.
D) a movement down along the aggregate demand curve.
E) a movement up along the aggregate demand curve.

Correct Answer:

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