Suppose that the U. S. federal government has borrowed $500 billion to expand its total spending on goods and services across the entire economy in an effort to boost by $500 billion the aggregate production by the nation's firms. Would we apply microeconomic or macroeconomic analysis to analyze this policy action?

Question

Social Studies

Leslie Prince

12 July, 02:02

Suppose that the U. S. federal government has borrowed $500 billion to expand its total spending on goods and services across the entire economy in an effort to boost by $500 billion the aggregate production by the nation's firms. Would we apply microeconomic or macroeconomic analysis to analyze this policy action?

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Answers (1)

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Gustavo Blanchard · Answer 1

Macroeconomic Analysis

Explanation:

The public debt is a fiscal policy that is basically regulated by the government and the congress, they regulate the state's decisions about its expenditures, taxes and indebtedness, in this order of ideas, through the fiscal policy, the government regulate the economy in a country that regulation is the resourse of the Macroeconomic Analysis.