Macroeconomic Essay Example | Topics and Well Written Essays - 500 words

Macroeconomic - Essay ExampleThe shift of scarce resources from the private to the universal sector would result in a budget deficit be courtship the presidency would have to increase the spare-time activity rates in order to capture the attention of the population to buy the debt. An increase in the political sympathies spending in particular areas can also be an instrumental way of promoting technological innovation, the skills of the work force and the social infrastructure. For instance an increase in government spending on transport infrastructure will not only have a cumulative effect on the aggregate demand further will also promote productivity and competitiveness (Riley). Likewise, if the government spends more on education, it would have send off effects on the population, producing more educated individuals and a skilled workforce. An increase in the spending of the government would have a direct impact on the aggregate demand. Increased government spending would cau se an increase in the aggregate demand, which would in turn have an impact on the entire economy. The increase AD would culminate in the rise in the output as well as the prices. unless over a long period of time, the increased government expenditure causes a fiscal insurance multiplier, characteristic of increased consumer spending (Mankiw 484).