Why congress has increased government expenditures

Reference no: EM13201979

During the Vietnam War, Congress increased government expenditures while raising taxes. As a result what happened to the AD curve is unclear. An increase in government expenditures shifts the 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.

Reference no: EM13201979

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