An increase in military spending will cause the AD curve to shift to the right.

Name: An increase in military spending will cause the AD curve to shift to the right.
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Question

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An increase in government spending on military activities will increase aggregate demand (AD) and shift the AD curve to the right. This is because such spending increases economic activity and output, leading to higher incomes, employment, and consumer spending.

An Increase in Military Spending Will Cause the AD Curve