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lolokrat:

anyone knowledgeable in macroeconomics that could help me with some general questions?

lolokrat:

ok so if the price level increases does government spending increase too? like i know that if g spends more it increases inflation but does inflation affect how much they spend

Timmyspu:

Well the more the government puts money into the economy the more it speeds up the economy but the more they take away from the economy the economy will slow down and produce less.

Timmyspu:

Well the more money they put it will cause a lot of inflation. If they put 1.3 trillion dollars into goods and services for different products it will cause inflation because that would make the value of the dollar go down as far as how much the dollar is worth.

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