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Fiscal policy: If the concern is increasing GDP, why wouldn't a government want to pursue the policy...

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Economics

Fiscal policy: If theconcern is increasing GDP, why wouldn't a government want to pursuethe policy of just increasing spending indefinitely to avoid everhaving decreases in GDP?

Consider the effect oninterest rates and investment, also consider the worthiness ofpursing increased GDP as a singular goal.

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Fiscal policy refers to the Governments spending and taxation policies intended to maintain economic stability and achieve economic growth Its true that government sendingG is a component of gross domestic productGDPCIGXMHowever just increasing government spending indefinitely to avoid any decrease in GDP wont be    See Answer
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