How does government spending impact the economy?

Asked 10 months ago
Updated 10 months ago
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Government spending is considered as the main determinant of the economy.  A government can provide stimuli to economy and create jobs by spending on infrastructure, health, education and defense.

During economic recession,  increased public spending in the form of stimulus package boosts demand, motivating businesses to employ people and produce more goods and services thus reviving the economy.

answered 10 months ago by Lakshya Sharma

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