Sunday, November 09, 2008

Unit 2:Government income/borrowing during a recession

A good summary of the topic from Economics help

http://www.economicshelp.org/2008/11/government-borrowing-in-recessions.html

a) Using an AD/AS diagram, explain how govt borrowing and the resulting increase in govt expenditure should increase economic growth. Make sure you draw the diagram to show very little inflation results in the economy

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