Answer to Question #73674 in Microeconomics for lily

Question

Suppose the government increases its spending and that net exports increase. In two or three sentences, explain how these actions affect economic performance.

Answer 1

Increasing government spending contributes to the growth of production, accompanied by an increase in net exports. Such processes already affect the strengthening of the national currency, but at the same time possible acceleration of inflationary processes, and in the future it is possible to increase imports.