Suppose that the government makes a large cut to military spending. What does this do to aggregate demand?

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18-08-2022
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Suppose that the government makes a large cut to military spending. What does this do to aggregate demand?

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tutorconsortium204 tutorconsortium204 · Answer 1 · 2022-08-24T15:18:05+02:00

Suppose that the government makes a large cut to military spending is price rise, GDP Increases.

What causes a decrease in aggregate demand?

Federal government expenditure is increasing, deficits are persistent, and the national debt has reached hazardous levels.

The solution to these issues is to reduce the size of every government department by eliminating the most detrimental initiatives.

Federal spending cuts would stimulate economic growth by redirecting resources from low-valued government operations to higher-valued private activity.

Reduced expenditure would increase freedom by providing people greater control over their lives and eliminating the constraints that come with spending programmes.

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