When is it more expensive for a country to go to war during a ...

[jCorn1234]

When is it more expensive for a country to go to war  during a recession or during an economic boom? Explain.
 
  What will be an ideal response?

Question 2

Expansionary fiscal policy involves
 
  A) decreasing the money supply and increasing interest rates.
  B) increasing taxes or decreasing government purchases.
  C) increasing the money supply and decreasing interest rates.
  D) increasing government purchases or decreasing taxes.

[softEldritch]

Answer to Question 1

It is clearly more expensive for a country to go to war during an economic boom because it is more likely that the soldiers that will be serving are men and women that are already gainfully employed. Society loses the goods and services that they otherwise could have produced. However, if the country were to go to war during a recession the opportunity cost is lower because in many cases large numbers of new recruits will be drawn from the ranks of the unemployed.

Answer to Question 2

D