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It may temporarily improve the government's bottom line, but because government spending is such a large part of a country's economy, the net result is a drastic negative impact on the economy where entire industries (such a defense contractors) may cease to exist.
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What is the appropriate measure of government s involvement in economic activity?
it is the share of government spending in total spending in the economy
Which action has an expansionary effect on the economy?
Increasing government spending
How would the us government most likely react to a boom in the economy?
Increase government spending in order to stimulate the economy
Does an increase in government spending increase income?
An increase in government spending helps to stimulate an economy. Because the government is now paying other people to do work, those people are now receiving an income. They can then reinvest in the economy, leading to an overall growth in the nation's economy.
What does fiscal policy involve?
spending levels and tax rates to monitor and influence a nation's economy
What is the appropriate measure of government s involvement in economic activity?
it is the share of government spending in total spending in the economy
When was the federal government spending largest as a percentage of the economy?
The federal government spending was largest as a percentage of the economy in 2020 due to increased spending related to the COVID-19 pandemic and relief efforts.
What is the Republican view on economy?
They want a strong economy with little government spending -Bailey
What did President Roosevelt do for the US economy?
He increased government spending
Which action has an expansionary effect on the economy?
Increasing government spending
What did john f Kennedy advocate in order to stimulate the economy?
John F. Kennedy advocated for a combination of tax cuts and increased government spending as a way to stimulate the economy. He believed that reducing taxes would put more money in the hands of individuals and businesses, encouraging investment and consumer spending. Additionally, he proposed increased government spending on infrastructure projects and social programs to create jobs and boost economic growth.
How would the us government most likely react to a boom in the economy?
Increase government spending in order to stimulate the economy
Does an increase in government spending increase income?
An increase in government spending helps to stimulate an economy. Because the government is now paying other people to do work, those people are now receiving an income. They can then reinvest in the economy, leading to an overall growth in the nation's economy.
How does large Government spending help the economy?
Government spending increases aggregate demand by giving money to individuals and business to hopefully spend.
When does the government maintain spending and taxes at their current rates?
when economy is stable
What is the use of government spending to control the economy known as?
Fiscal Plicy
What does fiscal policy involve?
spending levels and tax rates to monitor and influence a nation's economy
