How would budget deficit reduction through reduced government spending affect economic growth?

Question

Quizplus · Accepted Answer

The impact of reduced government spending on economic growth depends on which government programs are cut. If the government cuts non-productive programs, such as subsidies to industries or unproductive public works projects, then budget deficit reduction could stimulate economic growth by freeing up resources that could be used in more productive areas of the economy. However, if the government cuts productive programs, such as infrastructure development or education, then it could hinder economic growth by reducing the economy's long-term potential. Therefore, the choice of which programs to cut is crucial in determining the impact of budget deficit reduction on economic growth.

How Would Budget Deficit Reduction Through Reduced Government Spending Affect