Multiple Choice
During the late 1960s,U.S.defense spending increased as the United States fought in Vietnam.This increase in government expenditure on goods and services most likely created
A) a recessionary gap.
B) an inflationary gap.
C) a decrease in aggregate supply.
D) a decrease in aggregate demand because consumers' expenditures decreased.
E) an increase in potential GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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