According to the Spending Allocation Model, What Happens If There

question 61

Essay

According to the spending allocation model, what happens if there is an increase in the share of GDP allocated to government purchases? What happens to the other spending shares?
According to the economic fluctuations model, what happens if there is an increase in government purchases as a share of GDP? What happens to the other spending shares?
Are the two models the same? What additional insight does the economic fluctuations model introduce?

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Definitions:

Resources Required

The materials, funds, personnel, and other items necessary to carry out a project, task, or enterprise.

Achieved Objective

An achieved objective is a goal or target that has been successfully met or accomplished.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs.

Evolution of Product Quality

The progressive improvement or changes in product quality over time due to innovation, customer feedback, and competitive pressures.