Multiple Choice
Spending on the national defence force is categorised as government purchases. How do increases in spending on defence affect the aggregate demand curve?
A) This will move the economy up along a stationary aggregate demand curve.
B) This will move the economy down along a stationary aggregate demand curve.
C) This will shift the aggregate demand curve to the left.
D) This will shift the aggregate demand curve to the right.
Correct Answer:

Verified
Correct Answer:
Verified
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