Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and

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"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." Does this policy directive follow from the short-run or the long-run framework? Explain your answer.

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Macroeconomics

ISBN: 978-1259663048

10th edition

Authors: David C. Colander

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