A deficit in the federal budget when the economy is operating at less than full employment should cause:

Name: A deficit in the federal budget when the economy is operating at less than full employment should cause:
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Question

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A deficit in the federal budget during a period of less than full employment typically leads to an increase in economic activity. This is because government spending injects additional money into the economy, boosting demand and encouraging growth.

A Deficit in the Federal Budget When the Economy Is