In the classical model there is complete crowding out when government spending increases,but in the short-run macro model there is only partial crowding out.

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In the classical model, there is full crowding out because any increase in government spending is offset by an equal decrease in private investment. However, in the short-run macro model, it is possible for there to be only partial crowding out due to factors such as unused resources or some degree of price stickiness.

In the Classical Model There Is Complete Crowding Out When