The federal budget for national defense has increased substantially to pay for the Iraq war. How would

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The federal budget for national defense has increased substantially to pay for the Iraq war. How would GDP in the United States have been affected if this higher defense spending led to?
a. larger budget deficits?
b. less spending elsewhere in the budget, so that total government purchases remained the same?

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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