Ask Question
1 November, 23:42

One of the long-run effects of higher government budget deficits is growth in the economy's private sector at the same time the government sector shrinks. a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods. a fall in the equilibrium price level. an increase in the government's share of the nation's economic activity.

+3
Answers (1)
  1. 1 November, 23:56
    0
    Complete Question:

    One of the long-run effects of higher government budget deficits:

    A. is growth in the economy's private sector at the same time the government sector shrinks.

    B. a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods. C. a fall in the equilibrium price level.

    D. an increase in the government's share of the nation's economic activity.

    Answer:

    D. an increase in the government's share of the nation's economic activity.

    Explanation:

    One of the long-run effects of higher government budget deficits is an increase in the government's share of the nation's economic activity because it would be mainly responsible for funding of the economy, thereby causing higher real Gross Domestic Product (GDP).

    A government budget deficit arises when government expenses exceed it's revenue.

    It usually expresses the financial health of a nation over a period of time.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “One of the long-run effects of higher government budget deficits is growth in the economy's private sector at the same time the government ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers