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5 March, 03:23

During the Vietnam War, Congress increased government expenditures while raising taxes. As a result we know that: the AD curve shifted to the right the AD curve remained unchanged. the AD curve shifted to the left. What happened to the AD curve is unclear.?

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  1. 5 March, 06:39
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    D. what happened because the AD curve is unclear.

    An increase in government expenditures shifts AD curve to the right while an increase in taxes shifts it to the left. Depending on the relative shifts, the AD curve could shift to the left, to the right, or not at all.
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