When the federal government uses expenditures to stimulate the economy, it changes not only the present but the future as well. Use the AS/AD model and the production possibility curve to explore the...

When the federal government uses expenditures to stimulate the economy, it changes not only the present but the future as well. Use the AS/AD model and the production possibility curve to explore the probable near-term and long-term consequences of three alternative stimulus options: medical care for all Americans; an increased military presence across the Middle East to promote U.S. domestic tranquility; the development of oil-saving and climate-friendly energy alternatives. In your analysis be sure to include the effect of increased deficits on investment.