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In private schools the main focus is given to english language which includes english speaking. Thus an increase in english teacher's salary will increase the overall total cost of the school to provide their service which wil reduce the revenue of the school. To maintain the earlier level of revenue, prices will go up, in this case, school's fee will go up.

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What economic theories supports an increase in government spending in order to benefit private industries?

Keynesian theory


When a decrease in one or more components of private spending completely offsets the increase in government spending there is?

When a decrease in one or more components of private spending completely offsets the increase in government spending, it results in a scenario known as "crowding out." In this situation, the net effect on overall demand and economic activity is neutral, as the increase in government expenditure is counterbalanced by the decline in private spending. Consequently, the intended stimulative effect of government spending may not materialize, leading to no significant change in overall economic output.


Which is not a reason for the government to provide a good or service as a public good?

Having more consumers would increase a private providers cost.


How much does the GDP increase if an economy has a crowding out effect of 50 percent?

The GDP would likely not increase because 'crowding-out' implies that the public sector is reducing private sector investment. Since usually there are additional costs to government spending because of collection and distribution, I would expect crowding out must be less efficient than private investment could be and, therefore, GDP would not increase due to crowding out but would likely fall.


How much does the GDP increase now if an economy has a crowding out effect of 50 percent?

The GDP would likely not increase because 'crowding-out' implies that the public sector is reducing private sector investment. Since usually there are additional costs to government spending because of collection and distribution, I would expect crowding out must be less efficient than private investment could be and, therefore, GDP would not increase due to crowding out but would likely fall.

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