If indeed governments spend more will jobs created be

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Aggregate demand involves the purchasing actions taken by consumers, businesses, governments, and the spending by U.S. and foreign firms and U.S. and foreign consumers. At this time, we know that consumers and firms are spending very little in the United States and around the world. Should governments in the United States spend more, increasing our debt, to compensate for the minimal spending we see by consumers and the private sector? (Keep in mind that our current national debt is $16 trillion. This comes to a debt of $52,209 per person in the United States and $145,787 per U.S. taxpayer.) If indeed governments spend more, will the jobs created be permanent or temporary? Support your thoughts using the tools of economic analysis.

Reference no: EM13396617

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