Spending on the Military Is Essentially Categorized as Government Purchases

question 9

Multiple Choice

Spending on the military is essentially categorized as government purchases.How do increases in spending on a military campaign affect the aggregate demand curve?

• A)They will move the economy down along a stationary aggregate demand curve.
• B)They will move the economy up along a stationary aggregate demand curve.
• C)They will shift the aggregate demand curve to the right.
• D)They will shift the aggregate demand curve to the left.
• E)As military personnel are not considered part of the labour force, a military campaign will have no impact on the economy.

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