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Although economists speak as if economic growth is necessarily a good thing, many question the sustainability and even morality of ever raising economic growth. Certainly we can nod to the idea that economic growth needs to keep up with population growth to maintain our current standard of living. However, does growth in excess of population growth increase well-being? A way to consider this is whether you are "happier," not whether you have more and better stuff, than your great grandparents were. Some argue "no" and that excess growth might even be construed as materialistic and immoral. Others argue that the pursuit of growth is depleting the earth's scarce non-renewable resources. I leave this issue in your capable hands.
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The following equations describe an economy, compute the simpler government spending multiplier in our open economy that applied under constant interest rate and equilibrium levels of output and interest rate
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