When military spending declines at the conclusion of a war, what usually happens?
A) there is a major economic expansion.
B) there is a recession.
C) there is an increase in inflation.
D) there is an increase in aggregate demand.

Question

Quizplus · Accepted Answer

When military spending declines at the conclusion of a war, it can lead to a decrease in government spending, causing a decrease in overall economic activity and potentially leading to a recession. This is because military spending is a form of government spending that can have a significant impact on the economy, particularly in terms of job creation and production of goods and services. When military spending declines, there can be a ripple effect throughout other sectors of the economy.

When Military Spending Declines at the Conclusion of a War