The United States decides to invade Mexico.  What affect will this change in autonomous spending have on aggregate demand? It will move the economy up along a stationary aggregate demand curve. It will move the economy down along a stationary aggregate demand curve. It will shift the aggregate demand curve to the left. It will shift the aggregate demand curve to the right.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 17E
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The United States decides to invade Mexico.  What affect will this change in autonomous spending have on aggregate demand?

  1. It will move the economy up along a stationary aggregate demand curve.
  2. It will move the economy down along a stationary aggregate demand curve.
  3. It will shift the aggregate demand curve to the left.
  4. It will shift the aggregate demand curve to the right.
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