During the Late 1960s, U

question 3

Multiple Choice

During the late 1960s, U.S. defense spending increased as the United States fought in Vietnam. This
Increase in government expenditure on goods and services most likely created

• A)an increase in potential GDP.
• B)a decrease in aggregate supply.
• C)a recessionary gap.
• D)a decrease in aggregate demand because consumers' expenditures decreased.
• E)an inflationary gap.

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Definitions:

Legal Statement

A formal written declaration, usually prepared by a lawyer, that outlines the facts or circumstances pertaining to a legal matter.

Consideration

Something that has value in the eyes of the law, and which a promisor receives in return for a promise.

Fixed Price

A fixed price refers to a pricing strategy where a specific cost is set for a product or service, not subject to change based on fluctuations in market demand or supply.

Provincial Jurisdiction

The legal authority granted to provincial governments to legislate and govern in certain areas that are not within federal jurisdiction.