Economists who believe in complete crowding out are not likely to advocate for an increase in government spending to remove the economy from a recessionary gap.

Question

Quizplus · Accepted Answer

Economists who believe in complete crowding out argue that government spending will completely crowd out private investment, leaving no overall effect on the economy. Therefore, they would not advocate for an increase in government spending to remove the economy from a recessionary gap.

Economists Who Believe in Complete Crowding Out Are Not Likely