Question

Suppose the government increases spending on public education by $700 million and individual spending on private education drops by $500 million. this is an example of:_________

Answer 1

Suppose the government increases spending on public education by $700 million and individual spending on private education drops by $500 million. this is an example of incomplete crowding out.

What occurs when government spending rises?

• Greater government spending, according to Keynesian economics, improves aggregate demand and consumption, which results in increased production and a quicker exit from recessions.
• Long-term economic growth is lowered when the size of government is steadily increased.
• Spending by the government distorts incentives, lowering output and efficiency.
• These assertions are supported by academic research and supported by relevant economic statistics.

To learn more about recession, refer to the following link:

brainly.com/question/1417711

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