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How does government spending contribute to the circular flow of US economy?
Wiki User
∙ 8y ago
It supports businesses by purchasing goods and services.
Clarissa Nitzsche
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How does the circular flow model of a mixed economy compare with that of a market economy?
Government is added into the circular flow model of a mixed economy.
How does the circular flow market of a mixed economy compare with that of a market economy?
Government is added into the circular flow model of a mixed economy.
Does the circular flow model of a mixed economy compare with that of a market economy?
Government is added into the circular flow model of a mixed economy.
What is the appropriate measure of government s involvement in economic activity?
it is the share of government spending in total spending in the economy
What is the expanded circular flow model of the economy?
The circular flow model of the economy is a conceptualization of the basic flows of income and spending in the economy during a given period of time. It is usually depicted on a diagram, which can be viewed at the Related Link.
Why is the circular flow model important?
Total income in the economy must always equal total spending. :)
What is the Republican view on economy?
They want a strong economy with little government spending -Bailey
What did President Roosevelt do for the US economy?
He increased government spending
Which action has an expansionary effect on the economy?
Increasing government spending
When was the federal government spending largest as a percentage of the economy?
1940
How would the us government most likely react to a boom in the economy?
Increase government spending in order to stimulate the economy
Does an increase in government spending increase income?
An increase in government spending helps to stimulate an economy. Because the government is now paying other people to do work, those people are now receiving an income. They can then reinvest in the economy, leading to an overall growth in the nation's economy.
