Question: Explain for each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them. The following events have occurred
Explain for each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.
The following events have occurred at times in the history of the United States:
• The world economy goes into an expansion.
• U.S. businesses expect future profits to rise.
• The government increases its expenditure on goods and services in a time of war or increased international tension.
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