If Government Purchases Increase, Inflation Will Increase, and There Will

question 155

True/False

If government purchases increase, inflation will increase, and there will be an upward movement along the AD curve.

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Definitions:

United States Policy

A set of principles, plans, and actions formulated and adopted by the U.S. government to achieve national objectives.

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A Guatemalan military officer and politician who served as the President of Guatemala from 1951 to 1954 and was overthrown by a CIA-backed coup.

Soviet Union

A socialist state that existed from 1922 to 1991, comprised of multiple subnational Soviet republics, with a government based on a one-party system led by the Communist Party.

Military Aid

The provision by a country of military resources, such as weapons, equipment, training, and sometimes troops, to another country to help bolster the latter's defense capabilities.