Part 1[25]
A government’s choice to raise its budget deficit as a proportion of the economy’s GDP will depend greatly on whether the economy’s output gap is positive or negative. Using a diagram, explain and evaluate this statement.
Economics 9708 · AS & A Level · Fiscal policy
A government’s choice to raise its budget deficit as a proportion of the economy’s GDP will depend greatly on whether the economy’s output gap is positive or negative. Using a diagram, explain and evaluate this statement.