Whether or not a reduction in the budget deficit is a pro-growth measure depends on how the budget deficit shrinks.

Question

Quizplus · Accepted Answer

If the reduction in the budget deficit is achieved through measures that allow for greater efficiency and productivity in the economy, such as cutting wasteful spending or implementing tax reforms, then it can be considered pro-growth. However, if the deficit reduction is achieved through austerity measures that harm economic activity, such as cutting public investments or services, then it can be detrimental to growth.

Whether or Not a Reduction in the Budget Deficit Is