The Federal Government in the U.S. has passed several fiscal policies to try to stimulate the economy during the pandemic. The U.S. debt has increased by more than $6 trillion since 2019. While this may be helpful to the economy in the short-run by boosting AD, it can cause inflation and hurt economic growth in the long-run.

Choose either the short-run or the long-run and explain the impact on the economy from the extra government debt spending during the pandemic. (Your answer should be at least 6 substantive sentences.)

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