Suppose policy makers pass a budget that results in a reduction in the budget deficit.Also assume that this fiscal policy action results in an increase in the saving rate.To what extent will this increase in the saving rate cause permanent changes in the rate of growth of output per worker? Explain.

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The Answer of Suppose policy makers pass a budget that results in a reduction in the budget deficit.Also assume that this fiscal policy action results in an increase in the saving rate.To what extent will this increase in the saving rate cause permanent changes in the rate of growth of output per worker? Explain.

Suppose Policy Makers Pass a Budget That Results in a Reduction