The federal government spending (relative to the size of the economy) was cut back in several dimensions

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The federal government spending (relative to the size of the economy) was cut back in several dimensions after the gigantic budget deficits of 2009 and 2010. How would GDP in the United States have been affected if this lower spending led to

a. Smaller budget deficits?

b. More spending elsewhere in the budget, so that total government purchases remained the same?

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Economics Principles and Policy

ISBN: 978-1305280595

13th edition

Authors: William Baumol, Alan Blinder

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Question Posted: Apr 16, 2018 02:52 AM

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The federal government spending (relative to the size of the economy) was cut back in several dimensions

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a If the decreases in government is not accompanied by cuts in taxes then this decr...View the full answer

Economics Principles and Policy

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