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increase government spending in defense, education & infrastructure

increase government spending in
defense, education & infrastructureAssume that the economy is already
in a recession, and both the President and Congress have decided to do
something to restore the economy. Both agree that lowering taxes would not be a
good idea, but do believe that it is in the best interest of the economy to
increase government spending in defense, education & infrastructure.
The President and Congress change
the budget accordingly, but after 18 months, GDP only increased by three
quarters of the expected amount. What factors might be responsible for this
situation?

increase government spending in
defense, education & infrastructureAssume that the economy is already
in a recession, and both the President and Congress have decided to do
something to restore the economy. Both agree that lowering taxes would not be a
good idea, but do believe that it is in the best interest of the economy to
increase government spending in defense, education & infrastructure.
The President and Congress change
the budget accordingly, but after 18 months, GDP only increased by three
quarters of the expected amount. What factors might be responsible for this
situation?

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increase government spending in
defense, education & infrastructureAssume that the economy is already
in a recession, and both the President and Congress have decided to do
something to restore the economy. Both agree that lowering taxes would not be a
good idea, but do believe that it is in the best interest of the economy to
increase government spending in defense, education & infrastructure.
The President and Congress change
the budget accordingly, but after 18 months, GDP only increased by three
quarters of the expected amount. What factors might be responsible for this
situation?

increase government spending in
defense, education & infrastructureAssume that the economy is already
in a recession, and both the President and Congress have decided to do
something to restore the economy. Both agree that lowering taxes would not be a
good idea, but do believe that it is in the best interest of the economy to
increase government spending in defense, education & infrastructure.
The President and Congress change
the budget accordingly, but after 18 months, GDP only increased by three
quarters of the expected amount. What factors might be responsible for this
situation?