(b) Suppose the economy is initially as in part (a). Then suppose a decline in business confidence reduces investment to 100. Calculate the new level of equilibrium output and the new budget deficit. Intuitively, why has the budget deficit changed even though fiscal policy is unchanged

If a country is looking to increase economic growth quickly, it should: choose the correct answer from the following choices, and then select the submit answer button. answer choices focus on natural resources and develop physical capital. make investments from domestic savings and adopt new technology. increase spending on human capital and start a new political approach. develop new technologies funded by the public sector.