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3) Spending on the war in Iraq is essentially categorized as government purchases. How do increases in spending on the war in Iraq affect the aggregate demand curve? A) They will shift the aggregate demand curve to the left. B) They will move the economy down along a stationary aggregate demand curve. C) They will move the economy up along a stationary aggregate demand curve. D) They will shift the aggregate demand curve to the right. B) the long run aggregate supply curve will shift to the left. A) an increase in expected profits for firms B) an increase in disposable income C) an increase in net exports D) an increase in interest rates 5) If the economy receives an influx of new workers from immigration, A) we will move up along the long run aggregate supply curve. 4) Which of the following will shift aggregate demand to the left, ceteris paribus? A) an increase in expected profits for firms B) an increase in disposable income C) an increase in net exports D) an increase in
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