Macroeconomics 11th Edition by Michael Parkin

تمرين 22

Supply-Side Effects of Fiscal Policy
Use the following information to work the Problem
Suppose that in the United States, investment is $1,600 billion, saving is $1,400 billion, government expenditure on goods and services is $1,500 billion, exports are $2,000 billion, and imports are $2,500 billion.
a. Is the government's budget exerting a positive or negative impact on investment?
b. What fiscal policy action might increase investment and speed economic growthExplain how the policy action would work.