Effects of Long-Term Deficit Spending: Analysis and Economic Impact
VerifiedAdded on 2019/09/26
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Report
AI Summary
This report examines the effects of long-term deficit spending, focusing on its implications for the economy. It discusses the role of government, particularly in the context of Keynesian economics, and analyzes how deficit spending impacts investment, interest rates, and aggregate demand. The report highlights the potential consequences of long-term deficits, including the need for increased tax revenues, increased government spending, and the potential for reduced economic growth. Furthermore, it explores the relationship between deficit spending and shortfalls in aggregate demand, emphasizing the importance of government intervention to stimulate the economy during downturns. The report also references scholarly articles to support its analysis and provides a comprehensive understanding of the complex economic issues surrounding government debt and fiscal policy.
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