Dan B.

asked • 11/05/14

Suppose the government engages in over production of a good. What are the likely effects on the private production of other goods? Explain.

Suppose the government engages in over production of a good. What are the likely effects on the private production of other goods? Explain.

2 Answers By Expert Tutors

By:

Lenny D.

tutor
It does not matter whether other goods are substitutes or complements. If all resources are fully employed. the over production of one good will lead to the under production of other goods on net.
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04/09/19

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