ninja24
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What is the link between austerity and economic growth?
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al131859
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austerity measures are used when economic growth is low- normally a recession for example
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ninja24
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(Original post by al131859)
austerity measures are used when economic growth is low- normally a recession for example
So, like expansionary fiscal policy? And what can I use to evaluate it
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al131859
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(Original post by ninja24)
So, like expansionary fiscal policy? And what can I use to evaluate it
sorry sorry I have explained that so badly! Okay so austerity is used whenthe government's budget is looking bad (a deficit) whihc happens after the government has had to spend more after a recession (automatic stabalisers). So measure would be anything that are used to dcrease the budget defifict, so higher taxes (evaluate with inequality) or less government spending. Hope that makes sense and sorry for being so bad at explaining ahah
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