Economics Question: Download Questions PDF
How do reductions in government spending affect the economy?
Answers:
Answer #1Generally the government is very good at wasting money and resources so less spending, by the government helps the economy as those resources are allocated in areas that are more efficient.
Answer #2Reductions in govt. Spending reduces the output produced and hence its GDP ( IS curve would shift leftwards
Download Economics Interview Questions And Answers
PDF
Previous Question | Next Question |
What is the opportunity cost of devoting scarce university land to car parking? | What is the significance of foreign exchange rate risk and how can this risk be mitigated? |