Explain why a government budget deficit is likely to stimulate economic growth.

When there is a government budget deficit it means that the government spending is greater than the government revenue, hence there is more money being channeled into the economy. This money can be used to invest in transport or infrastructure and so stimulating economic growth as increased jobs and opportunities arise.

HC
Answered by Hattie C. Economics tutor

2396 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Using real life examples, explain the differences between the different market structures.


Evaluate the use monetary policy to aid the economy's recovery just after a recession.


What is inflation


What is the difference between the long run and short run Phillips curves?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences