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In: Economics

Describe the ‘crowding out’ perspective on fiscal policy in your own words. In your opinion, what...

  1. Describe the ‘crowding out’ perspective on fiscal policy in your own words. In your opinion, what are the strengths and weaknesses of this argument?
  2. Why might government spending create a larger multiplier effect when unemployment is high and have a smaller multiplier effect when the economy is at full employment?

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Expert Solution

summary- in this answer there is complete description of crowding out perspective on fiscal policy .

Rahul Sunny answered 1 year ago
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