What is the proposed Budget deficit for 2018? Why is the deficit currently so large and...

What is the proposed Budget deficit for 2018? Why is the deficit currently so large and should the government be more focused on a balanced budget?

i) As a Keynesian economist, defend the use of this deficit spending to help the economy. Use the AD/AS model in your answer.

ii) As a Classical economist explain using the “crowding out” theory why you are opposed to this deficit spending. Use graphical support in your answer.

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Expert Solution

Rahul Sunny answered 1 year ago

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