How does wasteful spending by government affect economic growth
Answers
Answered by
1
In a recession, consumers may reduce spending leading to an increase in private sector saving. ... The increased government spending may create a multiplier effect. If the government spending causes the unemployed to gain jobs then they will have more income to spend leading to a further increase in aggregate demand.
Similar questions
English,
3 months ago
Math,
3 months ago
Hindi,
3 months ago
Business Studies,
5 months ago
Political Science,
1 year ago
Math,
1 year ago