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Question 14 4 pts During the Trump years (before Covid-19), the unemployment rate for the US was around 4%, hence, we're experiencing the so-called Natural
Question 14 4 pts During the Trump years (before Covid-19), the unemployment rate for the US was around 4%, hence, we're experiencing the so-called Natural Rate of Unemployment. Nonetheless, at that time, the government announced that in order to make the US economy to grow more, it was going to increase government spending and cut taxes. Economists argued that these type of actions would lead to a Crowding Out effect. Explain: 1. What is crowding out 2. Why the government plans were not successful in that specific US economic situation
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