Spending on the war in Afghanistan is essentially categorized as government purchases. How do decreases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the right.
B) They will shift the aggregate demand curve to the left.
C) They will move the economy up along a stationary aggregate demand curve.
D) They will move the economy down along a stationary aggregate demand curve.
Question 2
Rising prices erode the value of money as a ________ and as a ________.
A) store of value; unit of liquidity B) medium of exchange; store of value
C) store of value; unit of barter D) unit of barter; unit of account
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Government in America: People, Politics, and Policy, AP
American Government: Roots and Reform, AP* Edition, 12th Edition