Gdp only raise by three quarters of the expected amount., Ask an Expert

Economics

Slow GDP Growth

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Details: Assume 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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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9210091

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