Question

examine the economic implications of increase in government investment expenditure when the economy is in a state of depression​

Answer 1

Answer:

In response to the financial slowdown and its impact on the economy, the government plays a key role by increasing its spending in order to boost economic growth. With so much spending going in this area, it becomes important for the policy-makers to review whether the spends made by the government is actually promoting economic growth or not.

Before we discuss the topic in-depth, you need to be familiar with the terms like fiscal deficit, government spends, economic growth to create understanding of Macroeconomics required for financial markets.