Economist A believes that the expansionary fiscal policy --- in the form of increased government spending --- should be implemented to remove the economy from the recessionary gap it is currently in.This economist probably believes that

Question

Quizplus · Accepted Answer

Economist A believes that increased government spending will stimulate the economy and remove it from the recessionary gap. This suggests that they do not see crowding out (where increased government spending leads to a decrease in private spending) as a significant issue that will undermine the effectiveness of the expansionary fiscal policy. Therefore, the best choice is A).

Economist a Believes That the Expansionary Fiscal Policy --- in the Form