Multiple Choice
Spending on the peace keeping missions is essentially categorized as government purchases.How do increases in spending on peace keeping affect the aggregate demand curve?
A) They will move the economy up along a stationary aggregate demand curve.
B) They will move the economy down along a stationary aggregate demand curve.
C) They will shift the aggregate demand curve to the left.
D) They will shift the aggregate demand curve to the right.
E) This form of government spending will have no impact on the economy.
Correct Answer:

Verified
Correct Answer:
Verified
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