For a Given Inflation Rate, If Increasing Threats to Domestic

question 20

Multiple Choice

For a given inflation rate, if increasing threats to domestic security cause the government to increase military spending, then the ________ shifts ________.

• A)aggregate demand curve; right
• B)short-run aggregate supply line; downward
• C)aggregate demand curve; left
• D)short-run aggregate supply line; upward

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Definitions:

Normal Good

A product whose demand increases when consumers' income rises, and falls when income decreases, under the assumption all other factors remain constant.

Income

Steady income derived from professional efforts or investing.

Hamburgers

A widely enjoyed dish made from a patty of minced meat, typically beef, served between the halves of a cut bun.

Wage Rate

The amount of compensation a worker receives per unit of time or per task completed.