Spending on the Armed Forces Is Categorized as Government Purchases

Multiple Choice

Spending on the armed forces is categorized as government purchases. How do increases in spending on wars affect the aggregate demand curve?

A) They shift the aggregate demand curve to the left.
B) They shift the aggregate demand curve to the right.
C) They move the economy down along a stationary aggregate demand curve.
D) They move the economy up along a stationary aggregate demand curve.