Event: There is a war. Troops are committed to fighting overseas for the next th
ID: 1119563 • Letter: E
Question
Event: There is a war. Troops are committed to fighting overseas for the next three years. They will need supplies and equipment Due to this event, in the short run, does the economy move into a recession or an inflation? Event: There is a war. Troops are committed to fighting overseas for the next three years. They will need supplies and equipment Due to this event, in the short run, does the economy move into a recession or an inflation? Due to this event, in the short run, does the economy move into a recession or an inflation?Explanation / Answer
During a war the workers leave their jobs in order to participate in the war. This causes a decrease in the aggregate supply of the economy. As a result of low supply, the prices rise quickly because of the relative consistent demand. This leads to inflation in the economy.
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.