229k views
2 votes
When the government increases spending, it hopes to raise the demand for goods and services.

TRUE

FALSE

User MJB
by
3.2k points

1 Answer

3 votes

Answer:

True

Step-by-step explanation:

Increased government spending is likely to cause a raise in aggregate demand,this can leadto higher growth in the short-term.Higher government spending can also have an impact on the supply-side of the economy

User Jacouille
by
3.7k points